The Research Of Restricting Factors And Counter Measures On The Transnational Merger And Acquisition Of The Chinese Enterprises

Since the Reform and Opening Policy initiated in China, the transnational mergers and acquisitions (M&A) of Chinese enterprises have gone through several phases, respectively defined as Germination, Rising up, and Development. Both the amounts and sizes of the targets involved in the M&A process are growing bigger. However, restricted by the business environment and self-conditions of Chinese enterprises, a lot of problems are exposed in the rapid development of the oversea M&A.This thesis starts from the theories of transnational M&A, and summarizes the factors, from both the micro- and macro-perspective, which restrict the oversea M&A of Chinese enterprises. By studying the status of Chinese transnational M&A, theoretical and practical supports are provided to the decision-makers in not only enterprises but governments as well. Based on the dynamic nature of M&A, the strategic framework is also designed in this paper, which aims to enhance the ability of Chinese enterprises when carrying out oversea M&A and to promote the completeness and rationalization of the oversea investment policies of China.This thesis is mainly composed of six parts, listed as follows:In the first part, the theories of transnational M&A are generally summarized, and some representative points of view are also introduced. Resulting from the studying of general theories of M&A, international foreign direct investment, and restricting factors to the transnational M&A, it is concluded that the restricting factors to the Chinese enterprises'M&A transnational share some similarities with the world generalities, and whereas, represent a lot specialties of its own at the same time.The status of the oversea M&A of Chinese enterprises is studied in the second part, and the analyses are carried out from four aspects, which are experiences, motives, basic modes and the effects of both positive and negative sides. Though the transnational M&A of Chinese enterprises has achieved a great progress, the amounts and sizes are still much smaller than the average level dominated by the multinational enterprises; additionally, the motives and modes appear to be simple compared with the experienced M&A practices.The restricting factors to Chinese enterprises'transnational M&A are analyzed in the third part. The dynamic process of oversea M&A of Chinese enterprises consists of three phases: preparation, taking-place, and conformity. The restricting factors are varied in different phases with different extent of effects. Therefore, it is of great importance to identify and classify the most influential factors in detail according to different phases, especially in the case of shortage of funds, experiences, and specialists in the Chinese enterprises.A strategic framework for Chinese enterprises to implement M&A transnational is designed in the fourth part of this paper. Based on the previous studies, the framework begins with the restricting factors, from the micro-perspective, and then devises the framework for the enterprises to carry out oversea M&A by articulating the M&A choices for the principles and objectives, M&A modes, integrating strategy and risk avoiding strategy, which by contrast ends up in a macro point of view.In the fifth part, it is proposed a serious of suggestions with the objective of promoting further completeness and rationalization of the oversea investment policies in China. These suggestions include correlative policies build-ups, examination and approval systems developments, legislations supplements, intermediary agencies improvements and capital market promotions, and form a macro theoretical basis of strategy design for Chinese enterprises doing their transnational M&A. Moreover, the propositions could also be regarded as methods which help overcome the restricting factors to the transnational M&A of Chinese enterprises.The case study of CNOOC is studied in the sixth part. The reason for selecting this case-study is its objective of oil, the most sensitive strategic resource, and resulting from which, factors connected with political issues, capability for transnational M&A, and practical experiences are clearly involved.