Research On The Financial Support Of Chinese Mining Enterprises' Transnational Merger And Acquisition

After the prelude to transnational mergers and acquisitions opened from eighty years the last century,cross-border mergers and acquisitions has become one of China's foreign direct investment in the main output,More and more enterprises of different types take the way of cross-border mergers and acquisitions to get business objectives of Target Country and expand the development of the market.Chinese transnational M&A develops rapidly,which has become the main form of foreign direct investment in our country,but the purpose of M&A is still energy acquisition.At present,China's mining cross-border M&A's characteristics are huge amount of mergers and acquisitions,long acquisition cycle,diversification of M & A and mainly concentrated in developed countries.Those features decide that mining enterprises is difficult to complete cross-border M&A only relying on their own strength,so it needs a variety of external sources of funding and a sound risk protection mechanism.However,China's mining enterprises are faced with the difficulties of external sources of funds,the risk of overseas investment cannot be guaranteed.Therefore,in order to promote the orderly development of China's mining enterprises cross-border M&A,It is necessary to study the financial support of the mining enterprises overseas mergers and acquisitions to propose improvement strategy which can solve the problem of insufficient funds for overseas investment and no guarantee of risk.Based on international investment theory,trade-off theory,pecking order theory and the theoretical basis of commercial loans,this paper systematically analyzes the financing sources of cross-border mergers and acquisitions of mining enterprises through the collection of data and the statistics of relevant data,and found that the stock financing and bond financing are less in China's mining enterprises,and the capital of M & A is mainly from their own funds and bank loans,what's more the dependence of mining enterprises on bank loans is higher than that of other financing methods.However,it is difficult for enterprises to obtain enough funds for merger and acquisition because of the strict limits on the amount of loans and loan institutions and the single way of funds provided by bank and serious imbalance in capital flows.Then puts forward some instructive strategies in the light of the problems existing in the financial support of the transnational merger and acquisition of mining enterprises in China and on the basis of analyzing the mature financial support strategy of developed countries like America?Japan and The Republic of Korea which are perfect policy support system,special overseas investment legislation,financial support system of multiagency and diversified financing mode.The strategies are as follows: The government publishes the special overseas investment protection legislation at the same time improving existing policies in the approval process,the strict provisions of the drawbacks,the financial institutions to improve their own business functions and the establishment of specialized agencies and specialized overseas resources development loans.It can provide theoretical reference for government,financial institutions and mining enterprises to improve the existing financing drawbacks.