Research On Transnational Merger And Acquisition Risk Of Chinese Resource-based Enterprises

As the global wealth continues to grow,China's weight in the global economy has further increased.More Chinese companies have joined the wave of cross-border mergers and acquisitions.They intend to adopt this move to integrate more deeply into the global market,use foreign resources,and introduce overseas companies.Technology accelerates the formation of a global industrial chain and enhances the company's international influence.In the process of overseas mergers and acquisitions by Chinese companies,resource-based companies have always occupied a relatively dominant position.In recent years,resource-based companies have also increased their outreach efforts,which has also led to more frequent transnational mergers and acquisitions.However,in the cross-border investment in resources,due to the fact that the national resources in each country have certain regional restrictions and non-renewability,and are often closely related to the state power,coupled with the increasingly prominent shortage of resources in today's society,the resource-based enterprises' M & A activities are often raised to the level that affects the stability and security of resources in various countries.Because of the complicated process of resource exchange and communication between countries and countries,the differences in the geographical geography of countries,and the risk of selling resources,etc.,China's resource-based companies are greatly responsible for the cross-border M&As of resources.risk.These uncertain risk factors have seriously affected the enterprises' implementation of foreign investment strategies.If China's resource-based companies want to achieve mutual benefits and win-win results with the acquired companies in overseas M&A,they need to be very accurate in understanding all the unfavorable factors in resource mergers and acquisitions with other countries and be able to make targeted and accurate solution.This article is based on related theories of cross-border M&A,and references various domestic and foreign related literature books and classic cases.By analyzing the characteristics,status quo,and development trends of China's resource-based companies' cross-border mergers and acquisitions,this paper analyzes the existence of M&A activities.The various risk factors,together with the selected cases,were analyzed and discussed.Finally,conclusions were drawn and suggestions were given on the management of cross-border mergers and acquisitions risk of Chinese resource-based companies.