A Study On The Synergistic Effect Of Geely’s Acquisition Of Volvo

In recent years,the demand for Chinese enterprises to go abroad has become stronger,the number and amount of cross-border mergers and acquisitions of Chinese enterprises have been rising.The automobile industry is a technology-intensive industry.The development of automobile enterprises is strongly dependent on technology,the realization of automobile design,research and development,and production technology depends on long-term accumulation.Due to the late start and poor technical background of China’s auto companies,it is difficult to achieve rapid and leapfrog development only by relying on the efforts of China’s automobile enterprises themselves.Therefore,a viable option for China’s auto companies is to acquire advanced research and development technologies and learn advanced production management concepts through cross-border mergers and acquisitions of foreign advanced auto companies.Due to the complexity of cross-border M&A activities and the lack of integration experience,70% of cross-border M&A by Chinese companies ended in failure.Among these failed integration cases,a large part is due to the failure of successful integration after merger and acquisition,which cannot achieve the synergistic effect of merger and acquisition,leading to the failure of merger and acquisition.Therefore,it is necessary to study how to achieve synergy effect after M&A through effective integration measures.This paper is divided into five parts.The first chapter mainly elaborates the background and significance of the study,the literature review at home and abroad,research methods and contents.The second chapter is the theoretical basis of synergy effect.This chapter first introduces the definition and classification of mergers and acquisitions,then summarizes the synergy effect and its classification,and puts forward the indicators to measure the above effects base on this classification,which provides a theoretical basis for the following synergy analysis.Chapter three briefly introduces the background of Geely’s acquisition of Volvo,the motivation of Geely’s cross-border acquisition,the process of Geely’s acquisition of Volvo,and analyses the integration measures after Geely’s acquisition.Chapter IV analyses the synergy effect of Geely’s acquisition of Volvo based on the financial data,the number of patent applications and the number of new models.Chapter 5,through the analysis of the above chapters,combined with a series of integration measures carried out by Geely Group after acquisition,draws the inspiration of integration measures after cross-border merger and acquisition of Chinese enterprises,and puts forward suggestions for the follow-up cross-border merger and acquisition of Chinese enterprises and integration measures after merger and acquisition.Based on the above analysis and enlightenment,Chinese enterprises should actively seek cross-border M&A opportunities,achieve synergy through reasonable integration measures after M&A,win the development opportunities.