Challenges And Countermeasures In Soe Transtional M&A

This paper attempts to proceed with an analysis of the motives of China's state-owned enterprises'overseas transnational M&A, the successful overseas acquisition process. Through the introduction of specific cases "Sino-Steel Group merge Australia MIDWEST analysis" ,author attempts to study complex acquisition situation, challenges Chinese enterprises encountered in overseas acquisitions, and how to react them flexibly. Here, the author gives her thoughts and suggestion.Research Background:China's M&A market is booming while the global M&A market come into downturn, which has become one of the bright spots in the world layout. China's domestic enterprises have stepped out of the nation, such as CNOOC, CNPC, Baosteel, CITIC, Huaneng, and many enterprises under the central-owned enterprises such as Huawei, ZTE, Geely, All these enterprise called on and stressed the importance of "going out", which seemingly accelerated the internationalization of Chinese enterprises pace. But Transnational mergers is an extremely complex and complicated process. Chinese companies overseas acquisitions is a relatively new expansion strategy, they lack of relevant experiences. Frequent failure become a must result.Research Methods:This paper focus on the case "Sino-Steel M&A MIDWEST", analysis of merger situation, causes, valuation, problems met by China's SOEs and also in-depth analysis of how to deal with Japan and South Korea's the pincer attack from a hostile takeover and how to tackle complex international situation and strive for the biggest advantage in the acquisition deals.