Overseas M&A Research And Performance Analysis Of State Grid

In the word of accelerated economic globalization, the enterprisesin china are starting to go abroadand actively explore the international market in order to seek more optimized resources. For further optimizing the resource structure, strengthening foreign economic cooperation, implementing the "going out" international strategy,overseas M & A has become a trend for the enterprisesin china to obtain better resources. In the post financial crisis era, the continued appreciation of the RMB exchange rate, the weakness of the world economy and theadjustment of industrial structure has generated unprecedentedopportunitiesfor the Chinese enterprises to start the overseas M & A business.China State Grid Corp has also been evolved in the "going out" tread actively.From a broad view, State Grid takesthe long-term development of national energy and power grid planning, and self-innovationas the primary interest andsolved a series of major technical problems in UHV, smart grid and manufacturing equipment, becoming the leader in the electric power transmission market.All these factors provide strong support for its expansion in the international market. At the same time, the State Grid gives full play to the advanced experience of operation of large power grid management in the "going out" process and improves the local power grid operation level,safe and reliable power supply ability, and the national grid brand visibility,making China State Grid Corp be a "network of the world" blueprint for the development of the overall pattern emerging.We are in the great joys for the achievements when we face the rapid development of the overseas M & A industry, however, we also should keep calm to think and analysis how the enterprises could develop more constantly in the overseas M & A market. Therefore, this paper takes the China State Grid Corp’sacquisition of the Portuguese national energy network shares as an example, and buildsits evaluation of this acquisition on a financial performance evaluation system, which is based on five aspects of profitability, growth ability, operation ability, cash ability and debt paying ability. The evaluation result shows that the acquisition is a successful and makes a great improvement for the State Grid’s financial result in 2012. As a final conclusion, this paper gives advice on the overseas M&A strategy from the government and enterpriseperspective, which provides some certain theory basis as well as some practical guidance for Chinese enterprises to develop in the overseas M& A market.