Research On Motivation And Performance Of Cross-border M&A In Chinese Automobile Enterprises Take JiLi Purchase Prolon For Example

With the improvement of China's comprehensive strength and the growth of enterprises,more and more state-owned enterprises and private enterprises have begun to go abroad to invest in overseas markets and expand their business.“going global” has become a major trend in the development of Chinese enterprises.In 2013,“the Belt and Road Initiatives” launched by the Chinese government had a profound impact on the globalization of Chinese enterprises and brought a new round of “going global” opportunities for Chinese enterprises.Geely has frequent mergers and acquisitions(M&A)in recent years to respond to polices,as well as to adapt to the strategic upgrade of China's auto industry,the expansion of overseas markets,etc.,In June 2017,Geely Group signed a merger agreement with Malaysia's Proton Group to acquire a 49.9% stake in Proton and a 51% stake in its subsidiary,Lotus.However,the business situations after the M&A prove that the success of mergers and acquisitions is not the end,but the beginning of new challenges.It is need to be verified that the enterprise's M&A motivation has being realized and the M&A has improved the Geely's performance.In order to solve the above problems,this paper selects the case of Geely Group's acquisition of Proton and Lotus as the research object.This paper combines the history,characteristics of cross-border M&A of Chinese enterprises and the backgrounds of both parties to as a starting point to analyze to the motivation of Geely Group's acquisition of Proton and Lotus.At the same time,the financial indicator analysis method was selected to study the impact of the merger on Geely Group.And explore the implications of this case for China's auto manufactures to adopt M&A to achieve overseas expansion.