A Study On Cross-Border M&A:The Case Of ICBC

With the help of the development of economy globalization and finance unrestraint,the domestic market of finance comes into bloom gradually,more foreign banks break into Chinese market which undoubtedly makes domestic commercial banks facing more competitive situation in China market.As it says,”the most efficient defence is offence ”,cross-border acquisition is a short path for domestic commercial banks to be not only an easy entry in international financial market,but also a dominant participant in China inner market.the Industrial and commercial bank of China(ICBC)keeps to be a lead position since came into the international financial market,so the essay researches the ICBC's cross-border acquisitions,and analyses the impact that the acquisitions have on the effect of the ICBC's finance performance as well,finally find out to what extend do the cross-border acquisitions contribute to the ICBC.The first section of this essay is introduction,it mainly pointes out the backgrounds and research means,and demonstrates the innovation and deficit of this essay as well.The following section illustrates the cross-border acquisition's theory and motivation,and the overview of references from both domestic and foreign nations.The third section firstly introduces the background of cross-border acquisition of China,and then shows the ICBC cross-border acquisition's current situation,then analyses the ICBC cross-border acquisition's motivations and the strategies the ICBC utilises within the process,finally pointes out the opportunities and risks of cross-border acquisition while merging cross-nation companies.The forth part is case study,with an actual case of merging the South Africa Standard Bank by ICBC,analyses the merger particularly in the acquisition procedure order.The fifth section is empirical analysis,demonstrates the financial performances after merging the South Africa Standard Bank,carefully analyses to what extend did the South Africa Standard Bank contributes to the ICBC's financial performances,and illustrates the significance of cross-border acquisition by utilising finance data.The last part mainly introduces some suggestions and acknowledgements,and giving some strategic suggestions such as: reasonable and clear merger before acquisition,functions well and smoothly after acquisition.This essay argues that the finance performance of the ICBC is much better after cross-border acquisition than it used to be,which indicates that the ICBC's motivation,means and objective of cross-border acquisition is reasonable and facilitate the cross-nation merger success,and the merging case is also a significant example to other commercial banks as well.