Research On Chinese Enterprises’ Mergers And Acquisitions Of Canadian Mining Listed Companies

In recent years, China’s rapid economic growth, in such a prosperousdevelopment of stimulating the non-ferrous metals in consumer demand, whichgreatly increased the mineral resources in China’s dependence on foreign. The weakfoundation of the mine, renewable resources can not meet the needs of overseasresource rights is still small. Domestic enterprises in overseas mergers andacquisitions of foreign mining companies increasingly showing growth, while themature capital markets, mergers and acquisitions has gradually become themainstream trend, study Chinese mergers and acquisitions listed on the Canadianmining company has important practical significance. Divided into four chapters:Canadian mining capital market overview, mergers and acquisitions of Chineseenterprises to the status of the Canadian mining company, mergers and acquisitions ofChinese enterprises listed on the Canadian mining company, case studies, and Chineseenterprises in the Canadian mining investment opportunities and recommendations.In the first chapter, we introduced the world’s major mining capital market, thatthe common features of the four mining capital center for mining real industryfoundation, has an open liberal mining capital market rules, with a multi-level capitalmarket system. Analysis of the Canadian capital markets to the mining listedcompanies has a unique appeal, summarized the characteristics of the Canadiancapital markets: the TSX system to mature market discipline, TSX listing costs low,low threshold of the TSX-V listed, Canadian equity culture is rich, you can freely turnthe board the United States capital market.We analyze status quo of Chinese mergers and acquisitions of Canadian miningcompany and focus on Chinese companies on buying Canadian mining companies inChapter II. Chinese mining companies mergers and acquisitions with the rising pricesof resource products overseas resources acquisitions have become increasingly active,and showed a trend of increasing year by year, the participating enterprises, including the advantages of capital, technology and other leading enterprises in the strength ofthe private enterprises to go abroad acquisition mine resource. Its characteristics canbe summarized in the amount of low mineral resources overseas mergers andacquisitions, overseas mineral resources, mergers and acquisitions dominated by largestate-owned enterprises, gradually raise the enthusiasm of overseas mineral resources,mergers and acquisitions.The third chapter analyzes the cases of Chinese mergers and acquisitions listedon the Canadian mining company, Jien Nickel Industry acquisition of the RoyalCanadian mining success stories and Minmetals to acquire Noranda Aluminum,Canada failures plane analysis summarizes the accumulation of Chinese enterprises inCanada a lot of successes and failures, Jien Nickel Industry acquisition of RoyalCanadian mining success stories, to seize the favorable opportunity of the financialcrisis, control of overseas resources, will effectively enhance the resources of nickelreserves, provide a powerful guarantee for the company to supply of raw materials,conducive to enhancing the profitability and capacity for sustainable development.Minmetals acquisition of Noranda Aluminum, Canada is a case of failure, and lessonslearned in political, economic, cultural integration and management of mergers andacquisitions of overseas mineral resources.Chapter IV study the necessity and feasibility of overseas investment, andpointed out that there is still high demand for metals, energy minerals in a long periodof time if China’s economy maintained a steady growth level. The big countries of theglobal mining industry, in addition to the developing countries, the Chineseinvestment focus Canada’s abundant mineral resources, the center of the globalmining energy capital markets, should receive due attention. We propose Chineseenterprises’opportunities and recommendations in the Canadian mining investment,the ways of its investment include cooperative ventures, mergers and acquisitions,investment in equity and direct investment. In Mining investment Canada, we need tohave an international perspective analysis and should also clearly analyze the positionof value chain of underlying asset, furthermore we design appropriate financingmodels and deal structures in terms of its characteristics of earnings risk. Thoroughstudy of the operations of Canadian business laws and regulations, including taxation,company law, environmental protection, and so on. We should actively play the role of third-party advisory body.The main conclusions of this paper:1. Through the capital markets, mergers and acquisitions mining companiesoperable.2. Characteristics of Chinese mining companies overseas M & A situation can besummarized in the amount of low mineral resources overseas mergers andacquisitions, overseas mineral resources, mergers and acquisitions dominated by largestate-owned enterprises, and gradually increase the enthusiasm of overseas mineralresources, mergers and acquisitions.3. Chinese companies in Canada have accumulated a lot of successes and failures,including Jien Nickel Industry acquisition of Royal Canadian mining success storiesand failures Minmetals acquisition of Noranda Aluminum, Canada, and summed uptheir political, economic, cultural integration and management and other aspects ofmergers and acquisitions of overseas mineral resources, lessons learned.4. Analysis of the necessity, feasibility and favorable conditions for Chineseenterprises overseas mining investment, and investment advice.