Financial Risk Control Research Of Petroleum Enterprise Overseas M&A

Since thirty years of reform and opening up, Chinese economy has developed rapidly. But with the long-term extensive mode of economic development and large consumption of energy, the domestic energy supply has been unable to meet the growing energy demand. With the development of economic globalization, more and more Chinese oil companies go abroad to have overseas mergers and acquisitions. But facing the high failure rate of petroleum enterprises M & A, one of the reasons is that the financial risk is not very good control.This paper mainly adopts the combination of theory and case study to identify and control the Chinese petroleum enterprises overseas mergers and acquisitions. First the concept and theoretical basis are described. The financial risk is defined as valuation, financing, payment, exchange rate and integration risk impact on the financial throughout the whole process of strategic mergers and acquisitions, and then combined with the characteristics and causes of China petroleum enterprises cross-border mergers and acquisitions, The research analyzes the M&A financial risk in the whole process analysis of petroleum enterprise. Finally based on the acquisition between Cnooc and Nixon, the research put forward effective control of overseas mergers and acquisitions the measures for petroleum enterprises from the perspective of the government and enterprises. From the perspective of the enterprise: follow the national policy, using strategic tools to develop scientific and rational mergers and acquisitions strategy; two pronged due diligence and evaluation method of the reasonable choice; in the financing of use of tax planning idea; make payment budget funds; improve the exchange rate risk estimate and judge ability; progressive mergers and acquisitions after the integration; the international oil industry personnel training and the introduction of. From the point of view of government: strengthen the A-share market internationalization, widening payment mode; strengthen domestic petroleum enterprises overseas M & A service organization construction; establish the financing of overseas oil support system.The main contribution of this paper is having a research on all stages of petroleum enterprise by Theoretical study method and case study method with more details on the effect of Integrated part, hoping can help oil enterprises take appropriate measures for risk control in transnational merger and acquisition(M & A) to improve the success rate of M & A.