Research On Overseas Mergers And Acquisitions Of Central Enterprises

With the pace quickening of "going out" in central enterprises,the number of overseas mergers and acquisitions have been rising steadily.In February 2016,Chinese chemical industry and Syngenta Company signed the merger agreement;the merger price is $43 billion.In June 2017,Chemical industry formally completed the acquisition of Syngenta.The transaction money of the Chinese chemical merge Syngenta not only refresh China chemical past trading records,but also set a record of overseas mergers and acquisitions of domestic enterprises.The domestic capital goes out China,which has aroused the attention of domestic scholars,at the same time,due to there is less research about the central enterprises overseas mergers,so taking the central enterprises overseas mergers as one of study discourse is necessary.There are many reasons for enterprises to merge overseas enterprises.The relevant literature can be summarized as:operation effect,financial effect and manager motivation.Taking Chinese chemical merge Syngenta as an example,Syngenta is conducive to enhances agricultural chemistry competitiveness,realize the diversification of the business sector,increase China's agriculture science and technology level,and break the seed of high added value by the status of foreign enterprise monopoly.Chines chemical merge Syngenta company spent $43 billion,to and Syngenta company's enterprise value is $39.974 billion by discounted free cash flow model,but the actual value of the acquisition was $3.26 billion,the reason is worthwhile to studying.At the same time,overseas mergers and acquisitions is a complex economic phenomenon,it not only help enterprises to expand the scale quickly,but also take some risks for enterprise management.China chemical industry merge Syngenta,which need to face the capital risk,policy and social risk,brand trust and dedication risk and integration risk.Based on the overseas mergers and acquisitions of Chinese chemical enterprises and the existing risks,this paper puts forward some suggestions on the overseas mergers and acquisitions of Chinese enterprises,including point out the clearly strategic planning of overseas mergers and acquisitions;choose the suitable valuation method;select the appropriate mode of payment and assess the political risk;establish the early warning mechanism;strengthen business integration after merger and achieve synergies.