Overseas Mergers And Acquisitions In The Process Of Value Creation

The proportion of Cross-border Mergers and Acquisitions in foreign direct investment(FDI) has grown rapidly since 90's in the 20 th century. It has become a dominated meansof FDI in 1995. With the rapid development of China's economy, more and more Chineseenterprises are capable of operating in the overseas market. In 2005 the scale ofCross-border M&A of China is second to Japan in Asia. So it is very important that wemake a full research with the value creation of Cross-border M&A.This article discusses the status of Cross-border M&A in the world together withcurrent theortical development of Cross-border M&A. Then it makes a further analysisabout development of Chinese enterprises' overseas M&A. It establishes an initialtheoretical frame of value creation for overseas M&A of Chinese enterprises, in terms ofvalue -creation form,origin of value creation,risks of value creation. On base of thistheoretical frame, this article provides an Empirical Analysis towards the value creationin the cross-border M&A of DA by SGSB. Finally, this article makes an integral value-creation evaluation towards Chinese enterprises' overseas M&A, pointing out problemsprobably lying in this process and providing some countermeasures against these problems.