Study On The Impetus, Problems And Solutions In Cross-border Mergers & Acquisitions Of The Chinese Enterprises

With the deepening constantly of the economic globalization and integration, Cross-border M&A is gradually replacing "Greenfield investment" and has become the major means of the international strategy.In the late of 90s, based on America, Japan and Europe, the developed countries' enterprises raised the fifth wave of the cross-border M&A on the global scale. Under the influence of the fifth wave of global cross-border M&A, more and more Chinese enterprises go abroad and start the journey of transnational M&A. After 21 century, Chinese transnational M&As enter into the stage of rapid development. The scale of rapid expansion, the most powerful momentum, and overseas acquisition theory, concept, the use of the pattern of mergers, tools, and the means in the merger wave all produce a significant influence for china's multinational enterprises. Its merger cases and total acquisition amount are both rising rapidly. Chinese enterprises' transnational amount increased from 1.047 billion in 2002 to 33.5 billion dollars in 2009, annual growth rate up to 64%.Chinese international M&As cover 172 countries and regions in Asia, Europe, North America, Africa and Oceania, global coverage of 71%. According to Dunning's hypothesis of "investment development path" Chinese economy has reached the stage of the large-scale transnational investment's overall growth. At present the ratio of foreign investment outflow and inflow has been 1 to 2, but in the near future the proportion is expected to 1 to 1. By means of cross-border mergers and acquisitions, Chinese enterprises can effectively integrate global market, information, technology and resources, and expand the enterprises scale. It is the effective means of rapid expansion, winning transnormal development and a shortcut of Chinese enterprises to internationalize. However, because of the difference of international business environment and the complexity of international market competitions, cross-border M&As different from domestic enterprises mergers. If we don't respect the laws of capital optimization, the merger not only doesn't reach the desired objective and can cause great losses.In recent years, Chinese companies'transnational mergers have become the hot issue. The related international theories and practice have been receiving more and more attention. But China is still in the early stage of international M&A, the poor understanding of transnational M&A and the low level of participation, the lack of enterprises'enough strategic thoughts and the leaders having global view, the companies met a lot of problems when they took part in transnational M&A. Therefore, the further study of the theory of transnational M&A, the deep analysis of reasons and existing problems combining Chinese practice, and putting forward the countermeasures to solve the problems, have very important practical significance.The thesis bases on the Chinese enterprises'multinational business theories and practice in the starting stage of multinational M&A, tries to collect the newest data of foreign investment and Chinese enterprises'transnational M&As, sorts out Chinese multinational M&A cases in the near eight years, then analyses the causes of China international M&A, explains the problems Chinese enterprises face with, and puts forward the countermeasures for seizing the opportunities and meeting the challenges. Firstly, the thesis points out the present situation of Chinese enterprises transnational M&A:the rapid growth and unceasingly expanding total amount; the broad regional structure, from developing country to developed country; mainly by horizontal mergers; the diversification trend of participates. Secondly, this paper expounds five main causes of transnational M&A:to seek higher profit potential; to obtain the up-to-date technology; to obtain excellent assets and brands and occupy the international market; to obtain the natural resources the economic development needs and open domestic resources bottleneck; to bypass trade barriers and explore international market. Thirdly, this paper summarizes six main cross-border M&A problems according to present situation of Chinese transnational M&A:the lack of clear strategic acquisitions before the acquisition and M&As' insufficient preparation; the obscure M&A subjects; the imperfect legislation, the stiff examination system and the inefficient government decision-making; the imperfect development of capital market and the lack of strong financial support; the lack of transnational M&A intermediaries and high-quality talents of transnational; the integration of transnational M&A after the completion. Finally, aiming at Chinese international M&A problems the paper proposes countermeasures of preventing risks and improving the performance in two aspects, the government and enterprises. The government should strengthen the domestic legislation, perfect related policies and laws of transnational M&A; perfect related policies and give the policy tilt and reasonable support; develop domestic agency. The enterprises should make scientific strategies of transnational M&A and improve their abilities of merger; improve the transnational M&A operation ability; cultivate talented in transnational M&A; attach great importance to the integration of merger.