Study Of Foreign Mergers And Acquisitions Of Business Issues

Since 90's of last century we are facing the peak of global M&A. Thedevelopment of global economy and technology build up a strong power to drive this economic phenomenon to a level that we never seen before. As thecontinuously economic development of our country, China gradually becomesa hot place for foreign investors all over the world; the investment is gettingquick growth. Especially after we join in WTO, we work a lot on improvement of our investment policies for offering more and more relax and comfortable environment for foreign capitalists to take this chance for the next fast growing. Foreign M&A is a model of investment that fits our current economic development; it stimulates growth of our own industry economy and also adjustment of our whole industrial structure. However, we do have many problems in this investment process. In order to get more foreign investment involved in economic development of our country, we need to do more workon analyzing, getting more effective policies out to meet the increasing requirement of our industry and market.Chapter 1 talks about the definition of M&A and introduction of M&A fundamental theory, including the theory of early time and thoughts of modernconsideration. And also, we talk about the M&A history, especially the 4 M&A peaks happened so far. In the last, we talk about the feature of M&A boom starts in 90's of last century.In Chapter 2, base on the global M&A, we especially talk about the feature of M&A happens between companies in China and other foreign companies. From the data of M&A size, industries, region, we look into their detailed features.In Chapter 3, especially we talk about main factors that affect the foreig n M&A process in China, in the mean time, based on real case, we concludethe major model of these M&A cases, including the cases happen off stockmarket, and those, happen more recently, processed on the stock market.Chapter 4 talks about how China economy is affected by the foreign M&A. We focus on two points. The first one is that foreign M&A is helpful to our economy development, the adjustment of our economy structure and industrial structure, and also it is helpful to improve the competitive power ofour industries. The other point is that foreign M&A may result a potential possibility of monopolization, cause unbalance of industries and regions, cause the lose of government property and the instability of overall economy.Some suggestions we have based on the result of our research project.We need to adjust our mind, treat foreign M&A more seriously with a rightattitude, complete our law system, optimize foreign investment structure, buildand execute policies to keep balance between industries to prevent from monopolization, improve basic investment environment, professionalize intermediate processing service, and improve the level of investment control and monitoring.