The Study On Overseas M&A Of Chinese Enterprises Under "B&R Initiative" Strategy

With the rapid development of the world’ economy and the increasing degree of globalization, the economic ties between countries are becoming more and more closely, and the world is becoming a "global village". When national economy have great success, they are also facing the increasingly fierce competition, to obtain more resources and open up overseas markets, enterprises all over the world have to go abroad. Overseas mergers and acquisitions is one of the main form of foreign investment. Since the 1990, China’s economy has undergone tremendous changes, China’s enterprises have begun to try overseas mergers and acquisitions. With the continuous development of China’s economy and China’s rising international status, the strength of the enterprise of our country is getting stronger, overseas mergers and acquisitions has become a common occurrence, they are attracting more and more attention from all circles of the society. In order to encourage a large number of enterprises which have the ability to carry out overseas mergers and acquisitions, the government put forward the "going out" development strategy to provide policy support for these enterprises.Chinese cross-border mergers and acquisitions history is not very long and never take it in the previous four waves of global mergers and acquisitions until the late fifth wave. Although Chinese enterprises overseas mergers and acquisitions history is not long, but it is exploring a road of development that suits itself. In recent years, on one hand, due to the growing strength of Chinese enterprises, on the other hand, it also learned a lot of previous useful acquisition experience, Chinese enterprises overseas mergers and acquisitions have some new features. For example, in the main enterprises of mergers and acquisitions, private enterprises gradually have more and more important status and have equal shares with state-owned enterprises; in acquisition target industry, the energy, mining and other traditional industries are steering to power electronics, finance, telecommunications and other high-tech industries; in terms of funding in mergers and acquisitions, it has emerged multi-channel financing model for overseas acquisitions to provide great convenience for them. China’s overseas mergers and acquisitions have developed greatly compared to previous years.That " B&R Initiative " strategy has opened a wider world for China’s foreign investment, also it provides a good opportunity for overseas acquisitions. " B&R Initiative " along has nearly 60 countries and regions, and most of them are emerging economies and developing countries, which have broad prospects for development in infrastructure, interconnection, Internet, finance and other industries. Chinese enterprises should take advantage of this opportunity and utilize it reasonably, which has a very long-term development of far-reaching significance. However, because of unfamiliar of the overseas investment environment, tax environment, culture and customs, etc, "going out" also means more challenges for enterprises. " B&R Initiative " countries along have different levels of economic development and local cultures, when Chinese enterprises take overseas mergers and acquisitions,we must take different acquisition strategy according to different countries and regions, it is path selection problem of overseas mergers and acquisitions.This article describes Chinese enterprises’ overseas mergers and acquisitions history and characteristics and new opportunity which B&R Initiativeas brings. Also, it exemplified two overseas mergers and acquisitions cases in developing countries and two overseas mergers and acquisitions cases in developed countries. By comparison,we can summary issues that need attention in overseas mergers and acquisitions and select suitable acquisition path.