The Comparative Study In Transnational Merger And Acquisition Behavior Of Sany And ZOOMLION

Facing the competition from foreign enterprises,many Chinese enterprises have occupied the dominant position in the domestic market.In the context of globalization,Chinese enterprises urgently need to improve their international competitiveness in foreign markets.However,the level and extent of Chinese enterprises from product design to brand marketing and other aspects still have a large gap with foreign counterparts.Under the influence of competitive globalization,Chinese enterprises need to improve their internationalization level.Transnational mergers and acquisitions(M&A)may be the fastest and most convenient way for Chinese enterprises to obtain strategic resources and expand the market.In the past few years,transnational mergers and acquisitions have become one of the main strategies of many Chinese enterprises.Using the method of case study,this thesis aims to make study in comparative research of two case:one is the Sany and Putzmeister’s case,the other is the ZOOMLION and CIFA in Italy’s case,this paper attempts to explore the following four questions:(1)What are the motives for China manufacturing enterprises to do international merger&acquisition?(2)what are the different strategies in the process of mergers and acquisitions they have adopted?(3)what kind of M&A performance has been produced?(4)how can the motivations of M&A and the strategies of M&A affect the performance of M&A?This paper will analyze the motives of the transnational merger and acquisition from the perspective of resource-based theory.The motives of M&A of the five kinds of M&A are analyzed with the characteristics of competition driven,market seeking,seeking technology,seeking strategic assets and seeking efficiency.Through the analysis and comparison of the M&A performance between two enterprises and the modes of M&A,the influence of the different modes of M&A on the performance of M&A is explored.Through the research and analysis of this paper,the following main conclusions are drawn.(1)China’s construction machinery manufacturing enterprises want to transfer the intangible assets of developed countries such as brand and R&D capabilities to domestic enterprises,so as to enhance their competitive position in China.In order to disperse the business risk caused by too much dependence on the domestic market,expanding the overseas market is also the main cause of their transnational mergers and acquisitions.(2)The integration method is an important factor that affects the performance of M&A.It is suitable for the integration of the two parties to give full play to the potential synergy effect of the M&A,so as to achieve the target of M&A of 1+1>2.The cultural integration is particularly important,which can promote the complementary advantages and mutual learning of the two parties,thus creating new cultural advantages,enhancing the synergy effect and the performance of merger and acquisition.(3)When transnational mergers and acquisitions are combined with a powerful PE Agency(private equity institutions),the performance of mergers and acquisitions will be improved.This is because PE institutions,with their professional knowledge and abundant resources,can help mergers and acquisitions enterprises to ease financial pressure,provide M&A consultation and assist merger and acquisition integration,so as to promote the smooth and successful integration of mergers and acquisitions to enhance the performance of mergers and acquisitions.(4)The competitive internal consumption of domestic enterprises leads to the"high premium" of merger and acquisition,which is an easy to be ignored factor that affects the performance of transnational mergers and acquisitions.Due to the saturation of the domestic market,it is necessary to seek a larger foreign market.At the same time,some enterprises need to use higher price to acquire the standard that is not worth the price,thus causing huge financial risk and hindering the improvement of the performance of M&A.