| With the development of globalization) the international capital flows and cross-border cooperation between enterprises are increasing, cross-border M&A have also experienced a rapid growth. Since 1990s, with the continual increase in international cooperation and size of enterprises, multinational companies are also increasing. The future of global M&A are expected to grow rapidly on the background of low financing cost and corporate earnings growth. According to the world investment report published by the United Nations Conference on Trade and development over the years, global cross-border M&A amounted to$9731 million in 1987, and it reached$11000 million in 2012, an increase of about 10.3 times. China’s cross-border M&A also had a rapid growth, the number of cross-border M&A in the past ten years reached to 3066, the cumulative disclosure of mergers and acquisitions reached to$66650 million. By 2014,-corporate M&A activity surged to the highest level since the outbreak of the financial crisis, the global M&A transactions surged 47%over last year, the amount of$3.34. With the development of new policies and laws and regulations, the future of M&A wave will reach a new stage.On the background of China’s sustained and rapid development of economy, industrialization and urbanization, the demand of a variety of energy resources will continue to increase. According to the "2030 World Energy Outlook" released by BP, by 2030, China and India will become the world’s largest and the third largest economy and energy consumption country, their population, GDP and energy demand will account for 35% of the global? China’s one-time energy consumption volume was 2.735 billion in 2012, it reached 38.9 million tons in 2014, an increase of approximately 42.23%. Over the same period, China’s GDP growth rate was 19.17%. In future, energy supply shortages will limit the development of China’s economy. China’s energy resources storage is relatively short, but energy production capacity is relatively overplus. Latin America and other countries are relatively rich in energy storage, but due to lack of investment and technology, the production capacity is limited. The complementary nature of the industrial development, and the difference of energy resources promote the cooperation of China and foreign enterprises.With the implementation of the "going out" strategy, China’s resource-based overseas investment has continued to increase. Statistics released by Ministry of Commerce show that the amount of China’s overseas energy investment increased by nearly 18 times from 2003 to 2013. By the end of 2013, the cumulative amount of overseas investment of resources reached to 10617 million dollars, accounting for 16.1% of the total amount of foreign investment in China. The advocacy and construction of the Silk Road Economic Zone and the twenty-first Century Maritime Silk Road is to establish a new supply system and full use of international energy cooperation mechanism. Through the exploration and development of industrial parks, service areas and other major cooperation projects, we can further deepen the energy diplomacy policy, improve energy international cooperation. During the overseas mergers and acquisitions process, Chinese energy enterprises face greater political risk compared with other industries due to capital intensive, price volatility, energy issues etc. Under such background, it is necessary to study the relationship between the success rate of overseas M&A and political risk in the host country, which is also in line with the actual needs of the state and enterprises.The full Paper is divided into five parts. The first part is the introduction, which introduces the background, significance, innovation and deficiencies of the research, and builds the research frame. The second part is the theory and literature review. The theoretical part describes theory about cross-border M&A of development and developing countries, and the literature review section describe the current research situation of cross-border M&A from the domestic and international perspective. In the third part, the paper introduces the concept of political risk, and then describes the characteristics of China’s resource-based enterprises’transnational mergers and acquisitions, and introduces the mechanism of the political risk in cross-border mergers and acquisitions. The fourth part is the empirical part, The empirical study select representatives case and countries which resources are more abundant, and choose the opening degree and natural resource abundance as control variables, in order to be more in lined with the characteristics of resource-based enterprises overseas M&A and let study to be more comprehensive and valuable. Based on the control variables, the paper analyse a series of indicators related with the political risk, so as to identify the impact on the success rate of overseas M&A. Through empirical research, we can see that the government’s stability has a significant negative impact on the success rate of overseas M&A. In addition, the host country government and nation’s foreign acceptance also have a positive effect on the success rate. At last, This paper discusses different factors that effect the success rate of overseas M&A and puts forward some suggestions on the current situation of Chinese enterprises. This five is expected to provide some valuable suggestions for process of political risk analysis and strategies making in the M&A, and to provide theoretical and empirical support for Chinese resource-based enterprises. |
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