Study On The Risk And Countermeasures Of Transnational Mergers And Acquisitions Of Chinese Resource-based Enterprises

As one of the top ten resource consuming countries in the world,China has always had the problems of low per capita reserves,high dependence on foreign countries and lack of pricing power in the world.Cross-border M&A of resource-based enterprises is an important channel for China to acquire strategic resources and improve international competitiveness.In recent years,the sharp decline in commodity prices has caused a large number of resource-based enterprises to be severely hit,and the valuation is at a low level,which provides opportunities for China to change the situation that resource acquisition is subject to others.In addition,the vigorous implementation of China's " going out" and " the belt and road initiative" initiatives has created a good international environment and investment environment for cross-border M&A of resource-based enterprises.Therefore,now is the opportunity for Chinese resource-based enterprises to actively carry out cross-border M&A and participate in global resource allocation.But relevant data show that the failure rate of cross-border M&A of resource-based enterprises in China is very high,and even more than 90 % in the 11 th five-year plan period.Many enterprises not only failed to achieve strategic goals,but also plunged them into greater crisis.Therefore,this paper classifies and combs the risks existing in the cross-border M&A of resource-based enterprises,and gives corresponding countermeasures to help resource-based enterprises minimize the risks in the process of cross-border M&A.The full text is divided into five chapters except the introduction.Chapter two introduces the general situation of cross-border M&A of resource-based enterprises,and objectively analyzes the current situation and characteristics of cross-border M&A of resource-based enterprises in China in recent ten years.The cross-border M&A activities of resource-based enterprises are sluggish,and the turnover is greatly reduced.The main areas and target assets of the M&A are different.The development momentum of private enterprises is strong.The third part explains the motivation of cross-border M&A from macro and micro levels according to the changes of policy,international environment and industry status.The third chapter first introduces the classification of transnational M&A risks of resource-based enterprises in China,then divides the main risks in transnational M&A of resource-based enterprises into political risks,social risks,economic risks and decision-making risks,introduces the specific contents of each risk in detail,supplemented by typical cases,and finally points out the main reasons of risk formation according to the characteristics of each risk.Chapter four starts from the above risks,selects typical failure cases of Chalco's M&A of Rio Tinto to conduct specific risk research,and analyzes the risks existing in the M&A activities and the specific reasons of the M&A failure.Chapter five introduces and draws on the experience of the legal system construction,insurance system construction and the application of third-party intermediaries in enterprise M&A in western developed countries.The last part of the article is the countermeasures and suggestions.The article believes that in order to effectively prevent risks in cross-border M&A of resource-based enterprises,China should make joint efforts from both the government and enterprises.Specifically,in terms of government,the Chinese government should build a sound legal system of cross-border M&A,establish a sound overseas investment insurance system,give timely information feedback to enterprises,accelerate the reform of state-owned enterprise system and vigorously develop private enterprises.In terms of enterprises,Chinese resource-based enterprises can construct risk early warning mechanism in cross-border M&A,employ professional institutions to assist enterprises in their M&A activities,pay attention to personnel training,make full use of public relations means and create good public relations.