A Multi-case Research On Overseas M&A Of State-owned Enterprises And Private Enterprises In Auto Industry

Under the background of economic globalization, more and more Chinese enterprises start to go abroad involving in the international market competition. The history of overseas M&A of Chinese enterprises is quite short. To improve abilities such as technology, channel, brand internationalization level, overseas M&A has become the important strategy of many Chinese enterprises. In this processe China’s state-owned enterprises and private enterprises show the different development path and characteristics.Based on the auto industry as the breakthrough point, using multi-case study, with SAIC Motor and Wanxiang Group as samples and their four overseas M&A cases as the main research objects, the Chinese state-owned enterprises and private enterprises overseas M&A motivation, strategy, and has carried on the comparative study. By compiling data coding table and interval scale analyzes, this paper argues that the main reason for Chinese enterprises overseas M&A is the opportunity in global markets, the acquisitions of state-owned enterprises often with national strategic factors, and private enterprises overseas M&A more access to sales channels and technology. From a strategic point of view, strategy of private enterprises to develop overseas industry is more flexible, while state-owned enterprises is slightly inferior in cross-cultural integration management. From the point of risk, investment experience and integration ability are the important factors that affect enterprise transnational merger and acquisition risk.Above all, form the macro aspect, this paper argues that the government should have the international vision to develop relevant policy to provide guidance for the industry or enterprise which has the comparative advantage in the international market. Private economy and state-owned entities should strengthen the joint cooperation in overseas M&A, on the basis of complementary advantages, a combination of competitive ability and the stronge anti-risk ability can be formed, prompted migration of higher industry chain to the domestic, finally stimulating the industry’s innovation and promotion. From the micro level, the most fundamental factor is product quality, On the basis of the flexible use of capital operation, overseas M&A will enable a company grow fast in the globalization competition.