Chinese Merger And Acquisition In Italy: Case Study On Lessons From Qianjiang-Benelli Co.

In the 1990s,the Chinese government called on companies to implement the "go global" strategy;following the development of China's economic strength and the strengthening of enterprises,the “go global” has gradually become a normal state.Nowadays,we can see the pace of Chinese companies entering the world.Italy is a traditional European nation,as well as a traditional manufacturing country which has been favored by more and more Chinese companies in recent years.The reason why Chinese companies have shown a special preference for Italian companies is that Italy is a member of the European Union.To a certain extent,the country has been used as a springboard for Chinese companies to enter the European market.Several famous mergers and acquisitions have been carried out in Italy in the past decade and,in recent years,Chinese acquisitions in Italy have shown a significant change in the investment sector – from manufacturing industry to cultural,entertainment and other service industries.This dissertation will first summarize the outward M&As between China and Italy and analyze the characteristics and the basic models;then,the Qianjiang-Benelli Co.acquisition will be taken as a case,and the analysis of the implementation of M&A by Chinese companies in Italy will be conducted.Through the analysis of Qianjiang-Benelli Co.acquisition,it can be seen that the main problems between the two countries include cultural differences,government and corporate management systems,and integration after the acquisition.Through this research,the dissertation points out that Chinese companies' outward M&A present numerous issues.First,the government background of state-owned enterprises in China leads to low transparency in corporate mergers and acquisitions,and it's not conducive to the mutual understanding between Chinese and foreign companies.Second,the level of management of Chinese companies has yet to be improved.Third,Chinese companies lack skills in integrating after the acquisition.Correspondingly,foreign companies also face some problems in terms of M&A with Chinese companies.First,foreign enterprises are wary of Chinese companies and lack understanding of their culture and policies.Second,foreign companies are very unfamiliar with Chinese culture and this seriously affects the communication between the two.Third,it is difficult to apply traditional management methods to cooperate with Chinese companies.