Indian Enterprises Cross-border Mergers And Acquisitions And Its Enlightenment To China

Since the1990s, in the big wave of world cross-border M&A, China and India has been outstanding in cross-border M&A, both the quantity and amount have a great growth. But China and India has both similarities but also make differences in cross-border M&A, the same as the emerging economies and Asian’s developing countries, but after the study of the nearly10years cross-border M&A cases in China and India, we can find that the success rate in India is higher than in China. The aim of this paper is to summary the experience of India through the analysis of cross-border M&A of China and India under the background of the big wave of global cross-border M&A,and find out the problems which existing in China, to give us some enlightenments in cross-border M&A.The rate of India’s GDP growth has been over8%in recent years, as early as in2007, its total value of the GDP has entered the trillions of dollars economies, in2010and2011, has respectively reached to$16245and$18392. The contribution rate of India’s private sector to India’s GDP is as high as85%, the private enterprises are all highly paid attention to globalization, and actively to invest overseas, cross-border M&A, this is a big difference between India and China, the enterprises of cross-border M&A in our country are almost state-owned, on one hand the survival consciousness of state enterprise is weaker as contrast to private enterprise, on the other hand they are vulnerable to political obstacles of target country in the process of overseas investment. Besides, there are very big differences in choosing cross-border M&A target, industry and integration after the M&A between India and China. This paper focuses on the study of China’s problems in cross-border M&A, such as location, industry, integration and so on, from the micro perspective, the enterprise itself, to summary India’s experiences:Firstly, having clearly M&A target and combining with location and industry; secondly, encouraging more and more private enterprises to participate in international competition; finally, paying more attention to the integration after M&A, the key is the integration of culture and human.The other important reason that makes India’s cross-border M&A success can’t leave the government’s support and help, the India’s government provides convenience to India’s cross-border M&A enterprise in police, law and service system and so on, therefore, this paper is also from the macroscopic perspective, the government to analysis the failure of China’s cross-border M&A, and take examples from Indian government some successful experiences:Firstly, the government should change their character to give full play to its macroscopic regulating functions; secondly, formulating relevant laws and regulations to support the enterprise of cross-border M&A; finally, making the present service system perfect to better serve the enterprise of cross-border M&A.