The Research On The Motives Of Chinese Enterprises' Overseas M&A

With the rapid development of our economy and the continuous development of enterprises, more and more Chinese enterprises go on the internationalization road through the overseas mergers and acquisitions. For decades, under the impetus of the wave of mergers and acquisitions, the theory of the mergers and acquisitions moves continuously forward. Many scholars at home and abroad take the emerging economies such as China for example to study the overseas mergers and acquisitions of the enterprises. Mergers and acquisitions motive is the starting point of enterprises' overseas mergers and acquisitions. Through the sorting and statistical research of the mergers and acquisitions motivation, we will better explain what the enterprise want through the overseas mergers and acquisitions. At the same time, we can find whether the motivation of enterprises' overseas mergers and acquisitions change as the change of time, and whether the motive is different between the different types of enterprises.In this paper, on the basis of theoretical analysis and literature review, through the collection, sorting and statistical analysis of more than 700 cases of the Chinese enterprises overseas mergers and acquisitions, we study the Chinese enterprises overseas mergers and acquisitions motivation according to the four stages of time series.This article find that from the first case which occurred in 1984, Chinese enterprise'overseas mergers and acquisitions motive is: the diversity is a priority in the first stage(before 2000), in the second phase(2001-2007), pay attention to obtaining strategic resources, expanding the market and obtaining advanced technology, and then the third stage(2008-2011), operating synergy is more important, in the fourth stage(2012-present), Chinese enterprises restructure its plan and start again, it implement the overseas mergers and acquisitions more rationally.In this paper, the study find that the policy meaning of the Chinese enterprises overseas mergers and acquisitions weakened gradually, and the degree of marketization is getting higher. A growing number of overseas merger and acquisition activity have more than one motive, which reflects the comprehensive of the motivation of the overseas mergers and acquisitions is more and more strong. In addition, Chinese enterprises' overseas mergers and acquisitions have not given enough importance in the intangible resources such as the technology and brand.This article combine the enterprise overseas mergers and acquisitions motives with the mergers and acquisitions location and so on to make an analysis. We find that the motive of developing market is more and more concentrated in Europe and the United States and other developed regions. In the third stage, the number of the market pioneering overseas mergers and acquisitions by the central state-owned enterprises is more than the local state-owned enterprises again. Early the operating synergy motive of mergers and acquisitions mainly distributed in the asia-pacific region, gradually expanded to Europe and other regions. Private enterprises pay more attention to develop market through overseas mergers and acquisitions than state-owned enterprises.Meanwhile, some private enterprises gradually began to participate in acquiring overseas strategic resources from the second phase that is the 2001. And the local state-owned enterprises performs better than the central state-owned enterprises in the technology acquisition overseas mergers and acquisitions. In the fourth stage, the gap of the number of market pioneering overseas mergers and acquisitions and other aspects by the enterprises of Beijing and other regions is narrowing again.According to the results of the study, the government and enterprises overseas mergers and acquisitions related policy and suggestions are put forward. The government should not only strengthen guidance for enterprises' overseas mergers and acquisitions activity but for those routes; At the same time, the enterprises should also implement overseas mergers and acquisitions more rationally based on their own development needs, meanwhile, they should attempt to achieve multiple motives, to maximize the benefit of merger and acquisition; We should further deepen the reform of state-owned enterprises; The government and enterprises should pay more attention to technology, brands and other intangible assets in overseas merger and acquisition; The government should support enterprises to balance the manufacturing and services in overseas mergers and acquisitions, to achieve both of fusion; We should pay more attention to the private enterprise, to provide support for its overseas mergers and acquisitions; At the same time We should encourage more enterprises in the central and western regions of China to participate in overseas mergers and acquisitions.