Research On Performance Of Acquisition Of VOLVO Sedan Business By GEELY

With the development of economic globalization,China plays a more and more important role in the global market.Cross-border investment,mergers and acquisitions,technological cooperation and industrial transformation have developed rapidly throughout the world,and each country attaches greater importance to relying on foreign investment to promote the economic development of its own.China’s overseas investment opportunities have also increased significantly.In the tide of global economic integration development,China is transforming from a big capital inflow country to a big country of ODI,and Chinese companies are also gradually changing the role from the acquired to assets acquirers.Since entering the 21 st century,various mergers and acquisitions in the automotive industry have occurred frequently in China.The merger between GEELY and VOLVO Cars set a record of the highest turnover of China’s overseas M&A in terms of vehicle assets,and became one of the most significant events in China’s overseas mergers and acquisitions in auto industry.GEELY,a Chinese local private low-end auto company,has successfully acquired VOLVO,one of the world’s top ten automotive brands.This event roused a huge stir at home and abroad.The body of this paper is divided into six parts.The first part is the introduction mainly about the research background,purpose of the selected theme,experience and adopted research method of this paper.The second part is Literature Review in which the basic concepts,relevant literatures and analysis tools used in this paper will be introduced in detail.The third part is the case description that presents the background of GEELY’s acquisition of VOLVO,the motivation,its process,and general post-merger situation.This is followed by the fourth part of the case analysis,of which the main content is to analyze the situation of GEELY Group and VOLVO Cars before and after the acquisition from the financial and non-financial perspectives,and to evaluate various analysis indicators.The fifth part consists of the conclusion and policy suggestions.This merger and acquisition has enabled GEELY to develop rapidly from a private company into an international automobile manufacturer,and has also revived the long-established brand of VOLVO.Therefore,it can be concluded that this is one successful M&A case.At the end of this paper,several pieces of advice are put forward for overseas mergers and acquisitions by Chinese companies to guide future M&A participants to evade M&A risks and to enhance M&A performance.