The Cross-border M&a Risk Management Research Of WK Group

Mining has been based in economic construction and social development,get enough mineral resources is particularly important for nation building. Enterprise has its own foothold and development as well as the burden of social responsibility, under the circumstances of integration of the international market, China’s enterprises must accelerate the process of realize the internationalization and modernization.Minerals business enterprises in our country is more and more frequent on a path to the expansion of overseas mergers and acquisitions,basically has the following reasons:1.From the macroscopic perspective, the limited mineral resources in our country with huge population base to form bright contrast, infrastructure construction, railway, highway, subway transportation development, deployment, etc of the political and military strategy caused by the increasing resource gap; 2. From the micro perspective, enterprises to obtain the ideal mineral resources can improve its competitiveness and market share. Mineral resources overseas mergers and acquisitions, however, faced with complicated environment, wide, interlock program trival,and the problem of huge investment, long payback period sometimes involves a country’s sovereignty, m&a risk is particularly important. Because of cross-border m&a is the modern enterprises to carry out the main mode for foreign direct investment, and had significant influence on the world economy, if you can’t handle the m&a risk, cause the failure of mergers and acquisitions, will have a big impact to the enterprise, national, and even the world economy.The research object of this article is WK group’s overseas m&a practice, investigate its efforts in building a diversified base metals upstream business.To collate and review its overseas acquisitions events. To WK group, a typical overseas m&a cases in recent years has carried on the detailed analysis, the use of quantitative and qualitative analysis method of combining the research case studies.Then study the situation of WK Group’s cross-border m&a risk management, not only from the country’s political risk, legal risk, financing risk,valuation risk, exchange rate risk generally analyses the m&a risk, also for mining enterprise specific risks: exploration and development risk,price risk, environmental risk. Analysis of WK group in transnational merger and acquisition risk management aspects of the merits and the aspects to be optimized. Finally, respectively from the macro and micro level put forward suggestions to improve the WK group’s cross-border m&a situation: the improvement of the macro views from policy, law, finance, market environment to build.From mergers and acquisitions in the preparation stage, m&a in the implementation stage and m&a integration stage puts forward suggestions for the micro level.I hope that companys which through the development of overseas acquisitions to read this article to get inspiration and warning.