Research On The Financing Of Cross-border M&A Of Chinese Food Enterprises

As an important way to expand on international market and be competitive,cross-border mergers&acquisition becomes a new focus of both domestic and abroad enterprises.China also becomes an indispensable main player in the wave.To improve foreign exchange management,the state council simplified the authority concerned and made a series of specific provision in 2014.Under the background of increasing concentration in brand integration among Chinese food enterprises,transnational mergers have become an important method to obtain the global technology,strategic resources and to improve their production chain.All these may lead to their sustainable development and strength enhancement.The main force of M&A turns out to be China and India who is of potential in recent years instead of developed countries in western for the impact of subprime crisis.According to some scholars,China is undergoing the sixth wave of M&A.Chinese enterprises will be more active in the future with the encouragement of updating regulations.Based on relevant theories,the fact of nowadays mergers among food business and the typical case of Guangming-Weetabix acquisition,the paper finds main problems of current food enterprises in the financing when they proceed the M&A,and offers some suggestions.Focus was concentrated on the question that how Guangming financed enough funds to merger a valuable company and what problems they faced.After a series of analyses,the questions are answered and suggestions are offered on future practice.