| With the deepening of global economic integration, mergers and acquisitions(M&A) is the result of integrating social resources. As a core strategy of enterprise development, it plays a very important role. In recent years, the numbers of cross-borders M&A is getting more and more. There are great deals of enterprises carrying overseas investment.State Grid Corporation of China(SGCC) is the world’s largest utilities. It is ranked 7th among the Fortune Top 500 in the year of 2014. It is one of the leading enterprises in the global power industry. Since the national advocacy of “go-out” strategy, SGCC positively responded to the call of government. It has successfully implemented a series of cross-border mergers and acquisitions from 2007 till now. It serves as a model for the enterprises of our country. This paper analyses the related aspects of cross-border M&A strategy, trying to get some advice for others.The first part of this paper is introduction. It introduces the research background, research significance, the literature review,framework and research method of this paper. The second part analyzes the M&A pattern and motivation of SGCC in the past years. The third part uses SWOT mode to analysis the cross-border M&A environment of SGCC in the future. The forth part tells the various risks that may occur in the future M&A of SGCC. The fifth part analysis the main factors during its cross-border mergers and acquisitions. Based on the parts of the conclusion above, respectively, the last part contains proposals to similar enterprises overseas mergers and acquisitions as following: Actively expand the electric power business with the China-proposed Belt and Road Initiative. Use politics and diplomatic resources to promote M&A. Expand financing channels and set up global information service network. Consummate M&A management system and implement the strategy of localization. Cultivate special talents for M&A. Strengthen research and technological innovation. |
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