| Cross-border merger and acquisition is an important way for enterprises to develop international markets and is also an important way in which capitals flow around the world.Many enterprises have taken the road of merger and acquisition to gain high-quality resources,expand market shares,enhance strength and so on.With the improvement of economic globalization,the amount,scales and influences of merger and acquisition are increasing.Being restricted by economic backwardness,enterprises in China started cross-border merger and acquisition in 1980 s,which was later than foreign enterprises.While,most enterprises failed in the process of cross-border merger and acquisition during this period.With the help of reform and open policies,a large amount of enterprises developed quickly and reinforced strength of their own.Chinese government began to encourage enterprises to acquire advanced resources by means of cross-border merger and acquisition.Despite the fact that a notable amount of Chinese enterprises began cross-border merger and acquisition after China being a member of WTO,these enterprises were still lacking of the experience of responding the risks existing in the process of cross-border merger and acquisition.Chinese enterprises must respond these risks properly in order to stand out in the fierce international competitive environments.Bright-dairy,as an excellent enterprise in the dairy industry of China,became the largest shareholder of Synlait Milk by means of cross-border merger and acquisition,which aimed to help Bright-dairy build its whole industry chain and increase its brand influence.This was the first case of cross-border merger and acquisition in the dairy industry,which is full of demonstration significance.This paper uses Bright-dairy as a case study so as to combine theory with practice.This paper introduces the process of Bright-dairy's responding risks,the effects and the reasons.Finally,this paper summarizes the conclusions and enlightenments.This paper has a certain value for the study of Chinese enterprises' cross-border mergers and acquisitions.This paper firstly introduces the characteristics and the trends of cross-border mergers and acquisitions of Chinese enterprises under the current economic environment.The subject,which enterprises should enhance their abilities of defending risks in the process of cross-border merger and acquisition,is also introduced.Based on the study of theories on merger and acquisition as well as relevant risks,I think enterprises should integrate the risk dispersion theory and adopt a variety of risk management strategies in the process of cross-border merger and acquisition.The theories of risk dispersion and risk management strategies are applied to the case study of Bright-dairy to analyze Bright-dairy's responding risks.Firstly,the article introduces the risks encountered in the process of mergers and acquisitions,as well as the measures taken.These measures includes compromising the policy,gaining aids from professional consulting organizations,using mixed paying methods and taking a variety of integration measures.Secondly,Bright-dairy successfully alleviated different kinds of risks.Thirdly,the article deeply analyses the reasons behind Bright-dairy's successfully responding risks: these measures aid Bright-dairy to avoid some situations where risk may occur,to control the situations where risk may appear,to reduce the likelihood of risks etc.Finally,the article summarizes some conclusions and enlightenments for other enterprises.This paper mainly study the risks and the response in the process of cross-border merger and acquisition by Chinese enterprises from dairy industry,aiming to aid Chinese enterprises find a proper road for cross-border merger and acquisition.Due to limited research level of the author and the difficulty in gaining data and materials,there may be some mistakes in the reasoning process and conclusions. |
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