Study On Financial Risk Of China Chemical Group’s Merger And Acquisition Of Swiss Syngenta Company

With the development of global economy,the competition among enterprises becomes increasingly fierce,which brings enormous pressure to both domestic and foreign enterprises,and makes the important goal of enterprises gradually transform into the pursuit of survival.However,the realistic background is the continuous shortage of resources and the increasing asymmetry of information,so many enterprises choose cross-border mergers and acquisitions in the process of seeking survival to the world or in the expansion of international business.Cross-border mergers and acquisitions are also the driving force to promote international capital flows.However,due to the lack of relatively rigorous and scientific theoretical guidance and relatively lack of practical experience,many Chinese enterprises involved in cross-border M&A have failed.This paper mainly uses case analysis method to analyze China Chemical Group’s M&A of Switzerland Syngenta Company.The main ideas can be divided into the following aspects:Firstly,on the basis of distinguishing and summarizing the financial risks of M&A,aiming at the financial risks of cross-border M&A,this paper proceeds from the development background of Chinese enterprises and the related financial risk theory of cross-border M&A.This paper elaborates,which provides an effective analysis for China Chemical Industry Group at the level of theoretical basis.Next,in view of the real development of enterprise mergers and acquisitions in China,this paper makes a brief analysis on the motivation and financial risk identification of China Chemical Group’s merger and acquisition of Swiss Syngenta Company.On this basis,this paper puts forward corresponding countermeasures:for example,paying attention to the reasonable financing structure,avoiding excessive financing resulting in insolvency,and adopting a variety of payment methods.Avoid single financing,seek the optimal payment structure,avoid the failure of mergers and acquisitions caused by the breakdown of the capital chain,seek the help of specialized agencies,increase the research on the merged enterprises,and try to achieve information symmetry.In addition,we should detect and prevent the special risks in the process of M&A,such as legal policy risks,interest rate risks and so on.Transnational mergers and acquisitions can not only help enterprises to seek tremendous development prospects and achieve integration and synergy effect,but also enable enterprises to reduce investment risks,integrate resources and reduce capital investment.In order to obtain more affordable and abundant global resources and realize the vision of increasing market share and market share,many enterprises begin to formulate cross-border M&A strategies in an organized and planned way,and actively promote the process of cross-border M&A.Therefore,in-depth study of the financial risks and solutions that enterprises may encounter in the process of participating in cross-border M&A has become the key,which is also crucial for the future development of Chinese enterprises.