A Case Study On Cosco Shipping’s Acquisition Of The Operation Rights Of The Greek Port Of Piraeus

As a way of FDI,cross-border M&A is the main trend for Chinese enterprises to choose FDI in recent years.But look from the current situation,most of the transnational merger and acquisition is not successful,or suffered a defeat in the beginning of the merger and acquisition,or serious problems in its management after the merger,the success of cross-border M&A cases rare,therefore,the analysis of transnational mergers and acquisitions successful cases,will provide valuable experience for reference to other transnational mergers and acquisitions.The period from 2012 to 2016 is the golden period for China’s overseas mergers and acquisitions.The number and amount of China’s overseas mergers and acquisitions reached a peak in 2016,and the number and amount of China’s overseas mergers and acquisitions reached a new high.After the union strike and the political turmoil in Greece,cosco shipping successfully acquired the 67%operation right of Piraeus port in 2016,which not only brought new fulcrum for overseas growth for cosco shipping port,but also became an important part of the group’s overseas strategic layout.This paper selects the case of cosco shipping’s acquisition of Piraeus port as the research object,in order to guide Chinese enterprises to carry out cross-border mergers and acquisitions more effectively by virtue of the success of this case.This article from the acquisition of motivation,PEST analysis,financial performance,acquisition risk evaluation for the Piraeus cosco shipping this case,the following conclusions:according to the dynamics analysis,cosco shipping purchase the Piraeus mainly to country in the layout and the group overseas strategy layout and the market share and competitiveness;According to PEST analysis,cosco shipping has the political policy support,the favorable environment of economic and Greek sovereign debt crisis,the support of Chinese management experience and mode in culture,and the advanced equipment in technology,which make it occupy a great advantage in external environment.From the perspective of financial analysis,cosco shipping’s overall operation after the merger is good,with all indicators of profitability,operating capacity and development capacity improved to varying degrees.Its solvency also performs well in the asset-liability ratio,a long-term solvency indicator.From the perspective of risk analysis,cosco shipping still calmly and actively responded to the risks such as strike,minimum payment clause crisis and Greek regime turmoil when acquiring,and overcame the crisis that most enterprises could not deal with in a timely and effective manner after mergers and acquisitions.In general,the acquisition of Piraeus port by cosco shipping is a successful case.In the future M&A activities,Chinese enterprises should also formulate long-term and precise strategic objectives,strive for national policy support and strengthen integrated management.