A Study On The Cultural Fusion In The Transnational M & A Of State - Owned Enterprises

In recent years, along with the development of economic globalization and China’s entrance in WTO, Chinese enterprises have gradually become an integral part of world economic markets. State-owned enterprises are the most important part of our national economy, while they have to strengthen their own advantages and lead the domestic economical development in the face of fierce international competition. So state-owned enterprises expand rapidly through the merger and acquisition(M&A).Because M&A is the best method to gain international market resources and occupy advantage position with the short time and the low cost. At the same time, many successes of M&A fade like a flash in the pan as a result of the failure of integration, especially the culture integration.Firstly, this thesis summarizes the academic achievement in the area of M&A and corporate culture both in and outside China by literature analysis. Secondly, it analyzes the main problem facing china’s state-owned enterprises in cultural integration. Then, it analyzes cultural integration model of our state-owned enterprise and designs processes of cultural fusion’s implementation. Finally, selected two cases of Sinopec Group’s acquisition of Addax, and Shanghai Electric’s acquisition of Akiyama International as a comparative analysis, analyzed the different backgrounds and problems and the degree of difficulty of the two Chinese state-owned companies faced in the implementation of cross-border M&A cultural integration issues, and thus chose a different cultural integration model, elaborated and demonstrated the previously proposed theory. When drew lessons from the past, also made recommendations for cultural integration in implementation of cross-border M&A, to provide a reference for Chinese state-owned enterprises to help them carry out effective cultural integration, and make their M&A successful.