Based On The Core Competence Theory Of Cross-border Mergers And Acquisitions Analysis

After the entry of WTO, the transnational merger and acquisition (M&A) of Chinese enterprise increases significantly all over the world and forms a tide. This has happened under the background—underdevelopment of domestic M&A and low level of internationalization. Most of the transnational M&As' targets are firms of developed countries, such as America, Europe, Japan and Korea, and the purpose is mainly to obtain technologies, brands or international channels. However in reality many M&A cases failed and people start to pay attention to various problems arising from the M&A. Great anxiety and criticisms arise towards the necessity and success possibility of Chinese enterprises' transnational M&As.This essay is based upon the analysis on western theories of transnational M&A and attempts to interpret the drives and necessity of Chinese enterprises' transnational M&As through theory of core competence and build up the core competence model innovatively .Moreover, it analyzes the possibility of competitive advantage enhancement through transnational M&A and takes in-depth analysis of each elements in core competence and put forward with transnational M&A strategies and tactics.The main purpose of this paper is to explain that people should be calmer to analyze the possible problems and risks behind the hot wave of transnational M&A in order to avert unnecessary risks and achieve success through utilizing enterprises' core competence.