Research On The Motivation And Performance Of Geely’s Cross Border Merger And Acquisition Of Daimler Under The Background Of The Belt And Road Initiative

In the context of global economic integration,Chinese companies have actively engaged in the wave of mergers and acquisitions abroad in order to enhance their competitive advantage and seize a broader international market.Transnational mergers and acquisitions can have a positive impact on enterprises,but due to the existence of corporate culture,market preferences,and other factors,it is likely to lead to the risk of mergers and acquisitions,which will have a negative impact on the business performance of enterprises.Therefore,according to M&A theory,it is particularly important to evaluate business performance before and after cross-border M&A by using financial and non-financial indicators.On February 24 th,2018,Geely Automotive announced that it had acquired 9.69% of Daimler’s equity through its overseas business,making it the largest company in China’s automotive industry to acquire overseas acquisitions.Through the cross-border merger and acquisition of Daimler Company by Geely Automobile Company,we analyze the motives for its merger and acquisition,as well as the performance before and after the merger and acquisition,with a view to providing some reference and guidance for other domestic enterprises in overseas mergers and acquisitions.In this study,we in-depth explored the motivations and performance of Geely’s cross-border acquisition of Daimler.Taking into account the internal state of the company and the overall situation of the entire automotive industry,we have applied various theories,such as resource acquisition theory,synergy theory,and economies of scale theory,to deeply analyze Geely’s M&A objectives.Then,using quantitative and qualitative research methods,this paper studies the cross-border mergers and acquisitions of Geely and Daimler companies,and analyzes their financial and non-financial performance.The motivation for Geely’s cross-border merger and acquisition of Daimler is to seek R&D cooperation to adapt to the development of electrification;Expand market share and enhance market competitiveness;Extend extension and achieve synergy;Integrate high-quality resources to meet the company’s strategic needs.After the acquisition of Daimler by Geely Automobile Company,the growth ability,debt paying ability,and operating ability of Geely Automobile Company have been significantly improved.At the same time,the market share of Geely Automobile Company has increased significantly,improving the company’s technology and research and development capabilities,and improving the brand value of Geely Automobile Company.By using the event analysis method,Geely Automotive Company has achieved significant improvement in its performance after acquiring Daimler,which provides valuable reference value for Chinese automotive companies.When a company decides to participate in an overseas acquisition project,it must clearly understand the purpose of the acquisition,strengthen risk control,improve asset allocation capabilities,and promote communication and cooperation between both parties to achieve a win-win situation.