An Analysis On The Current Situation Of Chinese Enterprise Cross-border M&A And Related Policy Suggestions

With the overall development of Chinese economy and the enhancement of Chinese enterprises’ own strength, more and more enterprises begin to go abroad and take part in foreign direct investment positively. Cross-border M&A plays an irreplaceable role and has become an important way to invest abroad for Chinese enterprises in recent years. The report from Ministry of Commerce shows that the number of Chinese enterprises is 595,and the trading value is 56.9billion dollars. The data show that Chinese enterprises’ overseas mergers and acquisitions has entered a stage of rapid development. The scale and number of Chinese enterprises’ overseas mergers and acquisitions grow rapidly. What’s more, the industry and regional distribution is more reasonable. But, the economic benefits achieved by the merger was unsatisfactory. The success rate of Chinese enterprises’ cross-border M&A is far lower than that of other countries’. It is urgent to reduce the failure rate of cross-border M&A for Chinese enterprises. The paper first analyses the current situation of Chinese enterprise cross-border M&A, and then shows the reasons for failure and gives some related advices.The passage studies the current situation of Chinese enterprise cross-border M&A in detail based on the relevant data from the year of 1990 to 2014. First it introduces the scale and variation tendency of Chinese enterprise cross-border M&A. Secondly, it states the characteristics of overseas mergers and acquisitions from three aspects, such as the regional distribution, industry distribution and main body of M&A. Thirdly, it studies the motivations of overseas mergers and acquisitions. Then the paper points out the primary problem and farther states the reasons of failure. The reasons include lacking a clear merger strategy, making imperfect preparations, the existence of political risks and the integration failures of culture, management and human resources. Last but not least, the paper gives a series of suggestions to improve the situation, which can guide the development of Chinese enterprise cross-border M&A.