Research On The Target Company Selection And Performance Of Overseas M&A In The Chemical Industry Under The Guidance Of "One Belt,One Road"

Under the situation of weak overall growth of the international economy,China's economic growth has also slowed down,from the high-speed growth stage to the new normal stage.Industrial upgrading,expanding domestic demand and cultivating new economic growth points have become the primary tasks of China's current economic development.In September and October 2013,General Secretary Xi Jinping of China proposed the "One Belt,One Road" initiative,emphasizing a more comprehensive,coordinated and high-level "going out".Under the "Belt and Road Initiative",Chinese enterprises rely on their own strength.The promotion has set off a wave of overseas mergers and acquisitions on a global scale.Statistics show that in recent years,the number of overseas mergers and acquisitions of Chinese companies has increased and the scale has increased,and the upward trend is obvious,and the regions are also diversifiedAs a pillar industry of the national economy the chemical industry is in a critical period of industrial structure upgrading.Under the "One Belt,One Road" initiative,the chemical industry has begun to actively carry out overseas mergers and acquisitions.On the one hand,it seeks technical support to break through the development bottlenek,and on the other hand.it aims to achieve high efficienc by target enterprises.Overseas expansion.However,nearly two-thirds of the transactions ended in failure,and only 30%were in profit or flat after integrationAs the first step of M&A activity,M&A target selection is the initial judgment of whether M&A can create value and produce synergy effect,which has important theoretical and practical significance.Based on the motivation theory of mergers and acquisitions,this paper selects the typical case of overseas mergers and acquisitions of China Chemical Group,which is mature in China and has a high degree of internationalization,and has a relatively frequent occurrence in the chemical industry in 2017.It explores how enterprises should scientifically select target enterprisesIn view of the above problems,this paper firstly uses the literature research method to sort out the current situation and research results in related fields.Secondly,based on resource-based theory,superior resource sharing theory and location selection theory,analyzes the overseas mergers and acquisitions of the chemical industry under the "One Belt,One Road" initiative.The internal mechanism of target enterprise selection,sorting out the steps of M&A target selection;then,describing the current situation of overseas mergers and acquisitions in China's chemical industry,and pointing out the characteristics of the chemical industry's overseas M&A target selection;finally adopting the single case study method and selecting overseas The China Chemical Industry Group,which is experienced in M&A,analyzes the selection of overseas M&A target companies described in this paper by case.Through the research,this paper concludes that the chemical industry should adopt the following process when selecting the overseas M&A target under the "One Belt,One Road" initiative:First the company should select the M&A target based on the company's development strategy and analyze the motivation of the company's overseas M&A.Focus on understanding of their own strategies and resources,and identify their own resource needs to determne the direction of mergers and acquisitions including industry,geography,profitability,and scale.Second the selection criteria for overseas M&A target enterprises under the "Belt and Road Initiative" are:ownership and mergers and acquisitions.The overseas M&A incentives match the superior resources,analyze the political and economic environment of the host country of the target enterprise,select the host country with political stability,economic development and high degree of freedom,and the countries along the "Belt and Road" priority:third,through their own resources and The external resources search target enterprises;fourth,analyze the financial status of the target en terprises,and determine the target enterprises.