An International Comparison Of M&A And Reflections On China's M&A

Nowadays, Cross-Border Mergers and Acquisitions (M&A) has become a global trend, which steps up the development of economic globalization as well as the development of itself. The mutual promotion between them contributes to the liberalization and openness of global economy. And any country that shows indifference to this trend essentially means remaining backward. With transnational Corporations (TNCS) aggravation of competition, Cross-border Mergers & Acquisitions (M&A) have already exceeded newly-built investment, and become the main way of the Foreign Direct Investment (FDI), and is playing a more and more important role in the world. Not only in developed countries, but also in developing countries. Cross-border M&A are becoming the main mode of FDI. Foreign capital M&A of domestic enterprise means both opportunities and challenges. It is suggested that China should manage foreign capital M&A with rationality, while it adopt foreign capital actively, reasonably and effectively. Under these circumstance, the research of foreign capital M&A has more practical significance.This year, with the spread and deepening credit crisis of the United States and evolving into the global financial tsunami, major overseas stock market indexes continued to fall, U.S. and European companies in financial difficulties, investors lost confidence in global economic, recession has begun to show. As a result, the global M & A activity cooled significantly. In contrast with the global M & A market, the value of the transaction of China in 2008 is still up by 36% and reached 167 billion U.S. dollars. China's global mergers and acquisitions accounted for 6.9% of cases, more than double in 2007. In addition, the value of overseas mergers and acquisitions of domestic enterprises growth 74 percent contrasting to the same period last year, reaching 49 billion U.S. dollars. We believe that the current economic situation at home and abroad show that in 2009 would be a good year for the mergers and acquisitions. With the further implementation of"Going-out"strategy, and increase and deepening of enterprise transnational operation, cross-border mergers and acquisitions by enterprises in China will become more and more deeper and deeper. And it has shown some flourish. So as an new comer, analysis the character and trend of Cross-border M&A, study the experience from developed countries including some developing countries is very important to Chinese corporations.This dissertation is including four parts. The first part is exordium; it is mainly about thesis of the problem, theoretical research of M&A of home and abroad, main structure and frame work, main creative point and adopted research methods. The second part is the concept and the type of M&A, and analysis of the current characteristics and influencing factors of M & A .The third part is to do comparison of M&A of home and broad , respectively from the acquisition of the status quo, Motivation, regulatory environment and legal system of the institutional environment, the goal of M&A and strategic selecting, more detailed analysis of the development and differences of domestic and international mergers and acquisitions., identify the problem of Chinese cross-border mergers and acquisitions . On the basis of the comparative analysis, through analyzing the actual cases of Chinese M&A, Part IV is expounding on the Chinese M&A current problems as the basis for the recommendations and strategies. With a view to provide some valuable reference to future development of Chinese M&A , to make full use of domestic and foreign markets, to expand space for development and to enhance the level of China's opening to the outside world.