Mergers & Acquisitions In China

This thesis takes China M&A market as the research objective, divides all deals into three groups according to their payment methods, including cash payment M&A, stock payment M&A and mixed payment M&A, analyzes the market development of M&A in China. In particular, it pays attention to two key events, tradability of all outstanding shares and startup of commercial banks'M&A loan, and their groundbreaking effects on M&A market's future development.Chapter 1 and Chapter 2 introduce the concept of M&A, together with its motivations and classifications. At the same time, discussions on the development of M&A in developed markets and China are also made at the end of the two chapters.Chapter 3 and Chapter 4 are the main parts of this thesis. In Chapter 3, the analysis on the acquisition process of Midea's MBO, the deal structure, the financing methods, the repayment, and the pricing methods is provided, together with the summarization of the transaction features of domestic MBO. Further, the generalization of both characteristics and exsiting problems of domestic cash payment M&A is made in the chapter. The startup of commercial bank M&A loan in 2008, which is a key event for cash payment M&A, is also introduced in this part, with a detailed discussion on its influence over deal amounts, scales, leverage ratios and pricing methods.Chapter 4 analyzes two successive stock swap transactions which were happened on Shanghai Bailian and generalizes the key features of stock swap M&A in China and its development, with the concluding remarks on the characteristics and problems of domestic stock payment M&A made at the end. China started the equity right reform in 2004. Ever since then, the realization of tradability of all outstanding shares has caused significant influence on stock payment M&A market, including deals amounts, pricing and so on.The innovation of this thesis is that it discusses on different types of M&A in China based on the classifications of payment methods in a case study manner, and combines with the investigation on two recent key events and their influences over the China M&A market, also with an outlook on future market trend and development.