Research On The Transnational Merger And Acquisition Risk Of Chinese Automobile Enterprises

In today’s world, the economic and trade relations have become increasingly close, the economic activities which beyond the borders emerge in an endless stream, transnational M&A as one of them plays a more and more important role. On one hand, more and more enterprises from different nations begin to join the tide, on the other hand, the global amount of transnational mergers and acquisitions is rising. China is an emerging and developing country, with the development of the economy and the increase of globalization consciousness, Chinese enterprises including Chinese automobile enterprises has become increasingly active in cross-border M&A. According to the statistics from the Ministry of Commerce, in the year2013, the amount of cross-border M&A from Chinese enterprises was$51400000000, the successful trading projects amounted to397, these projects were from156countries and regions in the world. Although cross-border M&A has played a very special role in the development of enterprises, helps enterprises to realize the introduction of technology, the development of market and the use of personnel, the risk of cross-border M&A is drawing more and more attention and has become one of the hot topics in the current academia.In this paper, the author focuses on the study of transnational merger and acquisition risk of Chinese automobile enterprises, and has made a thorough analysis in that from the perspectives of theory study and case study, the author also put forward some specific risk-prevention measures. As the layout of this paper, the whole article is divided into7sections by the author.The first chapter includes three parts, the author illustrates the background and significance of this title, research ideas and methods, the possible contributions and shortcomings respectively.The second chapter mainly illustrates some important concepts like mergers and acquisitions, cross-border M&A, cross-border M&A risk, introduces the domestic and foreign researches on the transnational merger and acquisition risk in recent years, the author also gives a simple comment on these researches.In the third chapter, according to the title, the author introduces the present development of Chinese automobile industry, the history of Chinese automobile enterprises’transnational M&A and the current situation of Chinese automobile enterprises’transnational M&A.In the fourth chapter, the author mainly analyzes the transnational merger and acquisition risk which Chinese automobile enterprises may face, divides these risks into three parts according to the time order of transnational M&A, and illustrates them by the numbers. This builds a clear view and logic for the readers.In the fifth chapter, the author tries to evaluate the overall risk of transnational merger and acquisition from a quantitative point of view. First of all, the author introduces fuzzy comprehensive evaluation method and its model. Secondly, the author preliminarily demonstrates the use of this method and its model. Finally, the author illustrates the advantages and disadvantages of the application of this method.In the sixth chapter, the author selects the case Geely’s acquisition of Volvo, makes a deep analysis in the risk which the merger and acquisition process may exist, and points out that a series of measures taken by Geely reduce the overall risk of merger and acquisition effectively.In the seventh chapter, after deeply analyzing the case, the author believes that although Geely faced many risks in the merger and-acquisition process, the risk-prevention measures taken by Geely’s acquisition of Volvo prove right. For Chinese automobile enterprises,these measures are worth learning. Finally, according to the risk of transnational mergers and acquisitions, the author puts forward a series of risk-prevention suggestions.After completing this paper, the author summarizes the possible contributions of this paper, I will not repeat them at this place. In addition, because of the limited academic level, the author’ study on Chinese automobile enterprises’transnational merger and acquisition risk is still not enough, it also means this paper still exists room for improvement. In the following study and research, these shortcomings will be the direction of further efforts, I also hope that later researchers can make up deficiencies in this paper.