Research On The Risks And Prevention Of GlobalWafers' Cross-border Acquisition Of Siltroni

In the wake of the prompt improvement of economic globalization,liberalization of trade and investment,countries have initiated to be conscious of the fact that cross-border mergers and acquisitions have increased competitiveness,expand the world market share,and promote economic development.Multinational mergers and acquisitions entered the world economy all over the world step by step.This has had a enormous influence on the world economy.However,due to the fact that China’s cross-border mergers started late,the theory for it is still immature,which is of straitened circumstances to integrate with practice.Among them,the financial risk of cross-border M&A is particularly significant.Many cross-border M&A cases in China ended in failure because they did not correctly prevent financial risks.How to comprehensively and systematically study the main risks of Chinese enterprises’cross-border M&A and how to impactfully take precautions against and regulate the major hazards have proven to be an indispensable part of China’s cross-border M&A activities.Global wafer,a leading enterprise in China’s semiconductor industry,announced that it would acquire German semiconductor silicon wafer manufacturer Siltronic AG for $4.5 billion in 2020.This move has attracted widespread attention in the world.If the acquisition is successful,the market share of global wafer will jump to the first in the world.The M&A case is representative,so this dissertation takes the case of global wafer cross-border M&A Siltronic AG as the research object.Firstly,this dissertation defines the basic concept,main risk category and basic theory of cross-border M&A;Secondly,this dissertation introduces the case of global wafer M&A Siltronic AG,inspects the settings of both sides and analyzes the intention and procedure of M&A.Application based on related theories and cases,this dissertation comprehensively analyzes the pricing risk,main risk,payment risk and integration risk in the whole process of global wafer M&A Siltronic AG;Thirdly,this dissertation makes an overall analysis of the financial risk of the M&A case by using the intergration of analytic hierarchy process and fuzzy comprehensive evaluation,verifys that there is a specific level of financial risk in the case,and puts forward the relevant measures and deficiencies in the M&A;Finally,aiming at the main risks in this case,the dissertation puts forward corresponding prevention and control measures,including adopting scientific pricing mode,relying on professional organization evaluation,broadening financing channels,optimizing financing structure,improving the stability of enterprise cash flow,realizing financial synergy,improving operation and management mode,etc,For the purpose of offering the proper strategic goals in the future and the process of assisting multinational M&A in China.The results of this dissertation reveal that the main risks for Global wafer to take Cross border M&A actions to Siltronic AG mainly include pricing risks,financing risks,payment risks and integrated risks.Although there are many methods to evaluate M&A risk,there are some positive merits and negative demerits to each of them.For the moment,there is no specific technique which can absolutely,objectively and accurately quantify M&A risks.In this case,the risk assessment result of global wafer cross-border M&A Siltronic AG finance is high,and the pricing risk,financing risk and integration risk need to be strictly prevented.