Research On Precautions Against Financial Risk Of The Cross-border Mergers And Acquisitions Of G Company

Since 2014,with the support and inclination of the national for the new energy vehicle industry,the new energy vehicle industry of our country has entered the stage of high-speed development.As one of the core components of new energy vehicles,lithium ion power batteries have also ushered in new development opportunities.As a result of this,more and more capital and competitors are pouring into this market,the lithium industry chain enterprises facing both opportunities and challenges.Due to the scarcity of upstream resources in the lithium industry chain,in recent years,our G Company and T Company,ALB of the United States and SQM of Chile have become the industry leaders by cross-border M&A of high-quality lithium upstream resource-based enterprises to enhance their market competitiveness.It can be seen that,cross-border M&A is one of the important ways for the lithium industry chain enterprises to gain competitive advantages.However,due to the different countries of the two parties,cross-border M&A is bound to face greater financial risks.Therefore,before carrying out cross-border M&A,the financial risks that may be faced by cross-border M&A should be predicted and analyzed,and to adopt effective prevention strategies can greatly improve the probability of success of cross-border mergers and acquisitions.As G Company’s cross-border merger and acquisition of British B Company is typical and novel enough,this article selects this merger and acquisition case for a case study.Firstly,this thesis analyzes the motivations of transnational mergers and acquisitions of the lithium industry chain enterprises,and makes an in-depth analysis of the possible financial risks faced by transnational mergers and acquisitions and the risk prevention strategies that M&A enterprises usually adopted.Then it introduces the detailed process of G Company’s cross-border merger and acquisition of British B Company,analyzes the financial risks in the process of merger and acquisition and the preventive measures taken by G Company against these financial risks,then analyzes the possible deficiencies of the preventive measures taken by G Company,and put forward some suggestions for these deficiencies.Finally,relevant enlightenments are obtained from the transnational M&A case,and the experiences and lessons are summarized in order to provide reference for similar enterprises to carry out transnational M&A in the future.