Overseas Mergers And Acquisitions Under The "One Belt, One Road" Initiative

When the Belt and Road Initiative was established,our companies have good external environment in overseas M&A.In a positive market environment,more and more Chinese companies start planning internationalized business strategy.The B&R Initiative has promoted the overseas M&A,boosting the active participation of central SOEs and large private-owned enterprises in overseas distribution and overseas mergers and acquisitions.With the continuous increase of China's economic strength,the recovery of the economy in Europe and the United States and the continuous introduction of favorable policies of overseas mergers and acquisitions,the overseas mergers and acquisitions of Chinese enterprises are facing a series of new changes.It is foreseeable that with the introduction of various supporting measures and the improvement of the policy support system,the overseas M&A of state-owned enterprises will enter a new phase.In this paper,the B&R Initiative is the breakthrough point.This paper uses case study method and market analysis method,from the Belt and Road Initiative and the establishment of the Alliance,the One Belt and One Road Initiative and overseas M&A process,the synergy effect of M&A,and the market response to the acquisition that COSCO Sea Control offers to acquire OOCL.There are four aspects of the firm's overseas merger and acquisition of sea control research and analysis.In the Belt and Road Initiative support,the firm founds Ocean Alliance,M&A within the Alliance and acquires overseas ports.They actively structure important logistics nodes along the Belt and Road Initiative route.At the same time of allowing full play to intrinsic advantage,the firm explores the synergy effect further and increases operational efficiency and competitive power.The results of the study show that in the event which the firm actively conducts overseas mergers and acquisitions based on the institutional environment,the adjustment of the company's operating strategy in accordance with the institutional environment has four aspects.Firstly,the firm should conform to the current situation and obtain market support.Secondly,when merging with other companies,they could reduce costs,enhance advantages and make up for disadvantages.Thirdly,the synergies brought about by M&A will bring added value to both M&A companies.Fourthly,M&A within the alliance will bring positive market reaction to M&A.The research results not only enrich the research on institutional environment and corporate strategic mergers and acquisitions,but also have practical significance for practical operation.