The Study On Overseas M&A Strategy Chinese Banks

Since1860’s, the world’s banking industry has experienced several large-scale wave of overseas mergers and acquisitions, producing a great impact on world finance. From various countries’ banks overseas mergers and acquisitions’ practice, we can find that overseas mergers and acquisitions play a pivotal role in the bank to seize the market, gain a competitive advantage, and achieve international development. With the increasing liberalization of China’s financial market and the aggregate effects of the reform of commercial banks, Chinese banks overseas mergers and acquisitions conditions are maturing; overseas mergers and acquisitions is the inevitable choice for Chinese banks, and the important initiatives to the international business under the background of economic globalization development. Overseas M&A’s strategic choices for the bank, is the bank how to choose the specific way of implementation of overseas mergers and acquisitions, thereby increasing the probability of success of bank mergers and acquisitions overseas, enhancing the value of mergers and acquisitions, and it’s a very realistic economic proposition.However, due to the Bank of China overseas acquisitions started late, lacked the real-world experience, Chinese banks take a lot of detours in the overseas mergers and acquisitions road, facing great risk in overseas mergers and acquisitions. Face so many risks Chinese banks overseas mergers and acquisitions road should be how to go and can be how to go in the future, is a problem that we have to explore. In this paper, we put the ICBC acquisitions the Bank of East Asia (USA) for an example, analyzing the success of the ICBC’s overseas mergers and acquisitions strategy, in a bid for Chinese banks to develop overseas mergers and acquisitions strategy to provide some reference.This paper focuses on the strategic choice of the Chinese banks overseas mergers and acquisitions this issue to start on. Body of the paper is divided into four parts. Firstly, expounding the related theories of banks’ overseas mergers and acquisitions, carrying out a summary on the research of overseas mergers and acquisitions of domestic and foreign banks, which is the theoretical basis for research.Secondly, after a review of the history and current situation of Chinese banks overseas mergers and acquisitions, analysis the motives, internal conditions and external environment of the Chinese banks to participate in overseas acquisitions, and identify the specific opportunities and risks of Chinese banks overseas mergers and acquisitions.Then concrete analysis the successful acquisition case between the Bank of East Asia Industrial and ICBC, and study the reasons, the influencing factors and strategic significance for this merger and acquisition, and develop the characteristics of overseas merger and acquisition strategy of ICBC from its implementation approach.This paper analysis ICBC’s overseas mergers and acquisitions strategy for the sample, which is the success representative of Chinese banks overseas mergers and acquisitions, and give some recommendations of the strategic choice based on it, in line with China’s specific national conditions, and it’s of the realistic guiding significance of Chinese banks overseas mergers and acquisitions to formulation strategy.