Cultural Integration And Communication For Chinese Companies' Cross-border Mergers And Acquisitions

Since 1897, there have been six cross-border M&A booms all around the world. However, 7/10 of these Mergers and Acquisitions ended in failure. Among these failed cases, another 70% were due to poor cultural integration, and in particular ineffective cross-cultural communication.In recent years, Chinese domestic enterprises have also made some cross-border M & A transactions. With the case of Shanghai Automotive Industry Group purchasing Korea's Ssangyong Motor, Alibaba Group acquiring Yahoo China, Chinese companies are stepping forward to become global. Anyway, due to low acknowledgement by foreigners of Chinese corporate culture, and lack of M&A experiences, Chinese companies are faced with more severe problems in M&A practices, which make cross-cultural communication extremely important.This thesis starts with the definition of corporate and national culture. Because of huge differences between different nations in the two cultures, cross cultural integration and communication is very necessary. Then, the thesis briefly introduces the concept of cross-border M&A and current difficulties local Chinese enterprises are facing in their practices.Shanghai Automotive Group purchasing Ssangyong and Alibaba acquiring Yahoo China are the two cases this thesis analyzes. With a focus on the choice of cultural integration patterns, communication strategies and detailed suggestions for implementation at different stages of cultural integration, the thesis gives some recommendations for Chinese enterprises in their own acquisitions.