China Construction Bank, M & A Strategy Study

This paper introduces and analyses the theory and practice of M&A of both in China and the world, analyses the applicability of Corporation M&A Theory to CCB, discusses the new M&A trend of international banking industry, new challenges after join the WTO for CCB, the relationship between M&A strategy and development strategy of CCB, the inside and outside environment for M&A of CCB, the activator and effect of CCB M&A, and designs the M&A strategy for CCB on these basis.This article considers that the M&A of CCB should learn from the successful experience of international banking industry, close to the latest development of global banking M&A, and emphasize the strategic M&A. CCB should also adopt the gradual strategy, aim at the domestic and overseas markets, make the moderate shrinkage of scale and scope of its weakness, and carry through the M&A with emerging commercial banks and foreign banks initiatively, enjoy the scale economy and coordination effect. CCB should establish financial holding company quickly, discover mixed M&A actively, and salute to the arrival of mixed management times. In addition, CCB should step out the pace of overseas M&A, and improve the internationalization of CCB.The pivot of this paper is to analyze the scale economy character ofCCB and market force status, compare the two expanding routes of the internationalization of CCB (namely the representative office to branch mode and overseas M&A mode), forecast the mixed management trend of China banking industry. This paper has also designed the four modes of CCB M&A according to the strategy requirements and operation status of CCB. They are M&A strategic mode based on improvement of scale economy benefit, M&A strategic mode based on market force, M&A strategic mode based on internationalization, and M&A strategic mode based on mixed management.M&A is a brand-new experience for CCB. This article suggests that CCB ought to evaluate the internal and external conditions and obstacles of M&A generally, and complete the preparation works and conformity works after M&A.