Characteristics,Obstacles,and Countermeasures Of Foreign Acquisitions In China

Cross-border M&A has exceeded Greenfield Investment, becoming the dominant method of FDI. But, multinational cooperation seldom invest in china by the method of cross-border M&A. This dissertation aims at analysing the characteristics and barriers of cross-border M&A in china, and further offers some countermeasures. In the aspects of intention, methods of transaction and finance, as well as choosing of industry and targeting enterprises, some differences are showed obviously when multinational companies merger china's companies. This dissertation analyses the root of these differences from the angle of the theory of area and target choosing of cross-border mergers and acquisitions. we establish a model about the the successful realization of a cross-border M&A. And the costs and the incomes are concretely analyzed in this model.The high cost and low incomes hold back cross-border M&A in china. Specifically, macro-policy,immature capital market and different national culture and management style increase the cost of cross-border M&A in china, and the lack of enterprise's advantage and narrow market capacity reduce the incomes of cross-border M&A in china. We further offer some countermeasures to attract more foreign capital in form of cross-border mergers and acquisitions under the guidance of the theory of cross-border M&A based on endogenous enterprise's advantage. Reducing the cost and increasing the income of cross-border M&A in china are essence of policies targeting at attracting foreign capital by the form of cross-border M&A.