Case Study On M&A Of NT Company By Avic Automotive

After launching the policies of reform and opening-up,China's economy is amalgamating with the world and Chinese companies are accelerating their speed of overseas development,especially after China joined the WTO.It is the internal demand for Chinese companies to utilize the global market and resources.M&A is an important and attracting approach to acquire what the Chinese companies want:brands,technologies,R&D ability,customers,etc.China has been the largest automobile producer and consumer since 2009.but the Chinese independent brands are still disadvantaged on marketing,R&D and managing,because of the short developing experiences and policies.China's domestic auto parts manufactures are mostly located in the middle and low level of market,lack of innovation capabilities and core competing advantages when encountering with international auto parts giants.The 2008 financial crisis comes with the precious M&A opportunities for Chinese companies.It is a very successful case for Avic Automotive's acquiring of NT company among China's overseas M&A.This paper summarizes the successful experiences by case study method.First,this paper introduces the concepts and literatures of M&A.laying the theoretical groundwork for the case study.Second,this paper introduces the acquirer and target,the international background,the necessities,the M&A plans and processes,emphatically on valuation,the due diligence and integration,important parts that decide the result of the whole M&A;Last,this paper summarizes influences and performance about the M&A of NT company,as well as the enlightenments acquiring from this case.Based on the case study,the conclusion is:China's companies have the special advantages on M&A and integration,including complementary effects on strategies and products with M&A targets,be familiar with the China's domestic market,following game rules of modern enterprise by the link of capital and owner's rights.The purpose of this paper are providing some references for Chinese company,Giving them more inspiration and understanding,increasing the success ratio of M&A in the future.