Comparative Research On Overseas M&A Strategy Between Inner Mongolia Yili Industrial Group And Bright Food Group

As an important way of FDI, cross-border merger and acquisition can help enterprises obtain the specific resources, technology, management skills and enhance their competitiveness in the international market. This article will choose two representative food industrial companies, Bright Food Group and Inner Mongolia Yili Industrial Group, to compare the difference of their overseas M&A strategies, which other Chinese enterprises in food industry can learn some experience.This paper is divided into six chapters. Chapter One is introduction. Chapter two is a review of recent cross-border M&A theories. Chapter Three is a review of relevant literature. In Chapter Four, it will compare the difference in overseas M&A strategy between Inner Mongolia Yili Industrial Group and Bright Food Group. In Chapter Five, specific cross-border M&A strategies will be compared by choosing two cases from Bright Food and Yili respectively and they are Weetabix Food Company which is acquired by Bright Food and New Zealand Oceania dairy which is obtained by Yili. Chapter Six is conclusion. Through the comparison, we know that Yili and Bright Group both aim at Australia, New Zealand and other countries in Europe and America. Yili is mainly for the purpose of seeking high-quality raw milk and more emphasize on innovation research and domestic market. While, Bright Group which has more overseas M&A cases focuses on sharing the global sales network of target enterprises and global market. Also, the overseas M&A cases of Bright Group cover many industries because it has six core businesses. For the finacing model, the only overseas M&A case of Yili adopted cash and liability finacing model. While, Bright Group had used financing club and the whole leveraged financing mode to make finacing mode innovation. In the representative cases performance comparison, we find that securities market responsed positively to these two companies on the short-term performance comparison. But, on the long-term performance, Yili performs well than Bright Food Group.