Research On The Risk Of Cross-border M?A Of Lithium Mining Companies ——Taking Tianqi Lithium's M?A Of SQM As An Example

In recent years,the increasing number of fuel vehicles has brought serious damage to the environment,such as greenhouse gas emissions caused global warming.And with the increasing depletion of oil resources,auto enterprises in various countries must upgrade their products.With the worsening of the natural environment and the deepening of the concept of green development,new energy vehicles with less pollution and low emission are bound to become the mainstream direction of the automobile industry.Automobile enterprises in various countries are competing to layout new energy vehicle business by taking advantage of their respective advantages.The new energy automobile industry seems to have become an excellent medium for countries to boost the automobile industry,preempt the layout of high-tech and seek new economic growth points.As a key link in the new energy vehicle industry chain,thanks to the government's vigorous development of the new energy vehicle industry,the demand for lithium batteries is growing rapidly,and China's demand for lithium resources will increase greatly in the future.However,China's lithium resource reserves are relatively insufficient and the unit mining cost is relatively high.The way of obtaining resources through world trade also gradually shows its disadvantages.For example,the rise of international bulk resource commodity prices will increase its raw material costs.Compared with traditional methods,cross-border M?A can not only obtain a stable supply of lithium resources,but also quickly explore new international markets.At the same time,cross-border M?A inevitably faces many potential risks,and the effective prevention and control of risks is the key to the success of cross-border M?A.Therefore,China urgently needs in-depth research on the risk field of cross-border M?A.Based on the above problems,the author finds that domestic scholars have formed a relatively clear and systematic theoretical framework for the motivation,performance level and influencing factors of cross-border M?A.The theoretical research on the risk of cross-border M?A either focuses on a certain stage of risk research,or the research is mostly focused on state-owned enterprises,while the risk research of the whole process of cross-border M?A of private enterprises is rarely involved.Therefore,this paper selects the relatively novel cases of cross-border M?A in the current capital market,and uses the evaluation method of combining qualitative and quantitative methods to deeply analyze a number of risks that they may face before,during and after M?A.The conclusions are as follows:(1)it is easy to damage the interests of enterprises if they rush to acquire enterprises in other countries without full preparation;(2)Lack of necessary due diligence,laying hidden dangers for subsequent links;(3)Do not pay attention to negotiation skills,unable to grasp the initiative of negotiation;(4)Failure to employ multinational experienced asset appraisal companies,resulting in falsely high valuation of the target enterprise;(5)Overestimate the future income level and single financing mode,resulting in a debt crisis;(6)Failure to sign the performance compensation commitment agreement has further damaged the interests of the enterprise.The main contributions of this paper are: on the one hand,this paper focuses on the risk research of the whole process of cross-border M?A of private enterprises,hoping to enrich the literature in the field of cross-border M?A risk through this research;On the other hand,I hope that through the research of this paper,it can play a certain vigilant role,so that domestic mining enterprises can fully realize the importance of risk management in the process of cross-border M?A,and do not blindly pursue interests and ignore the hidden risk factors,otherwise it will only be counterproductive.