A Comment On The Merger & Acquisition Of Lenovo

There has been lots of big-scale Merger &Acquisition in western countries from the end of 1800', which brought about a large number of big, super-big model businesses. These businesses held up the weapon of cross-border Merger & Acquisition after the world-war II in order to acquire the better situation among the global competition. Since 1990', the cross-border economic competition has become more severe. Companies can avoid the investment limitation and the trade barrier of host nation , capture the market quickly by cross-border Merger & Acquisition. So cross-border Merger & Acquisition became the main international investment method. The amount of cross-border Merger & Acquisition was $1,200 billion in the earlier half year of 2005 according to the new statistics report by Thomson Financial. In pace with the Open Policy and the enhancing of self-strength, more and more businesses start to put their attention on the globe, get into abroad position, looking for new developing strategy room. But whether the businesses have the capacity of cross-border Merger & Acquisition, whether there is macroenvironment suiting for cross-border Merger & Acquisition in nation, and whether the businesses can conquer the hazards, are all worth thinking about for us. On the base of knowing about the current situation of the Chinese companies' cross-border Merger & Acquisition, this dissertation will analyze the motivation of Lenovo's cross-border Merger & Acquisition , study its hazards ,comment on its achievement by The Balanced Scorecard creatively, make the conclusion that the cross-border Merger & Acquisition of Lenovo to IBM PC does not create value for shareholders and that the Merger & Acquisition has not succeeded yet. The author hopes that the dissertation can benefit the reader to treat the Lenovo's Merger & Acquisition correctly and the enterprises who wish to go internationally learn the Lenovo's experience and lesson.