The Research On Overseas M&A Issues Of China Oil Companies

Energy is an indispensable means of production in industrial development and plays an important role in the economic development and national defense security.Due to the rapid development of China’s economy after the implementation of the reform and opening up,the corresponding energy consumption is constantly increasing.China’s energy problems are getting worse.Like many Western developed countries,China has been unable to achieve self-sufficiency in many types of non-renewable energy,and it is necessary to fill the domestic supply gap through large imports.The continuous improvement of external dependence on energy has increased the uncertainty in China’s economic environment and laid a huge hidden danger for China’s industrial development.To this end,the Chinese government has proposed a“going out”strategy and actively encourages Chinese energy companies to go overseas to find high-quality energy companies that may be acquired.China’s giant energy companies responded to the national call and actively explored the international development path.They have made small achievements in overseas energy mergers and acquisitions,and partially solved the energy security and shortage problems that hinder China’s economic and technological development.However,it should not be overlooked that the development of China’s oil companies is relatively late compared to foreign energy giants,and there is still a lack of experience in transnational business development.Therefore,there is still a gap between the overseas mergers and acquisitions results of domestic oil companies and the expected targets.Moreover,there are big risks in overseas mergers and acquisitions,so China needs to optimize and improve the overseas M&A model in the continuous exploration.Based on the above situation,this paper takes Chinese oil companies’ overseas mergers and acquisitions as the research theme,and analyzes the history of overseas mergers and acquisitions of China’s energy enterprises in 1994 for 25 years.Combined with the changes of the international crude oil market,this paper studies the characteristics of overseas M&A behaviors of Chinese petroleum companies under different international situations.And mainly analyzes the fluctuation cycle of international crude oil price and the motivation behind it from two aspects of economic factors and technical factors.Subsequently,the author makes a theoretical analysis of the motives of cross-border mergers and acquisitions of oil companies,and believes that the M&A activities of enterprises are mainly in the maintenance of national energy supply security,their own international business strategy needs,the synergy effect of mergers and acquisitions and the expansion of asset scale to achieve monopoly advantages.On this basis,the paper also studies the main influencing factors affecting the success or failure of Chinese oil companies’ overseas mergers and acquisitions,including political risks,financing payment risks,business management risks,and resources,manpower,and cultural integration risks after mergers and acquisitions.And to address these risk factors one by one to propose a coping strategy.In the part of the case study,the author combined with the case of PetroChina’s acquisition of Abu Dhabi National Oil Company,and conducted a detailed analysis of the overseas mergers and acquisitions of Chinese oil companies.The acquisition is a classic case in the history of China’s oil overseas mergers and acquisitions.This is also the first overseas acquisition by China after the international oil price plummeted.The acquisition achieved a strategic layout for the Middle East through a small number of shares,and laid a solid foundation for responding to the national“Belt and Road”initiative and deepening the energy interconnection.At the end of the article,the author puts forward corresponding suggestions for the optimization of overseas mergers and acquisitions of Chinese oil companies,and hopes that the research in this paper can open up new ideas for the related research of overseas mergers and acquisitions of national oil companies.