| With the continuous development of economic globalization,many Chinese enterprises have invested in the wave of overseas mergers and acquisitions in order to improve their competitiveness and gain a wider international market.Cross-border merger and acquisition can bring positive influence to enterprises,but it involves the corporate culture,local customs and market preferences of both parties,which is easy to cause the risk of merger and acquisition,and then affect the performance of merger and acquisition.Therefore,it is necessary to use financial and non-financial indicators to study the performance of enterprises before and after cross-border M&A based on the theory of M&A.On February 24,2018,Geely announced the acquisition of 9.69% shares of Daimler through its overseas enterprise entity,which once again created the largest overseas acquisition target of China’s automobile industry and attracted wide attention around the world.This paper takes the case of Geely Auto’s cross-border merger and acquisition of Daimler as the research object and systematically explores its motivation and performance,aiming to provide reference and guidance for enterprises’ cross-border merger and acquisition.In the study on the motivation and performance of Geely Auto’s cross-border merger and acquisition of Daimler,the macro environment of Daimler and the environment of the automobile industry were analyzed based on the actual situation of both parties.The motivation of the merger was systematically analyzed based on the theory of resource acquisition,synergistic effect and scale economy.On this basis,qualitative and quantitative methods were used to explore the synergistic effect of Geely Auto’s cross-border merger with Daimler,and to analyze the financial performance and non-financial performance of the cross-border merger.Through the research of this paper,it is found that the main motivation of Geely Auto’s cross-border acquisition of Daimler is to seek research and development cooperation and conform to the trend of electrification.Expand market share,improve market competitiveness;Expand the extension layout to achieve synergistic effect;Integrate quality resources to meet strategic requirements.Through this acquisition,Geely Auto’s financial situation has significantly changed,its growth ability has significantly improved,and its debt paying ability and operating ability have been enhanced.Although its profitability has declined,the overall development trend is good.In addition,the acquisition significantly increased Geely Auto’s market share,improved technology and research and development capabilities,significantly enhanced brand value,and also improved Geely Auto’s international influence.The financial synergistic analysis based on the event study method also found that after the acquisition of Daimler,Geely Automobile presented a good market development prospect.The experience of Geely Automobile’s cross-border merger and acquisition of Daimler has certain enlightening significance and value for Chinese enterprises in cross-border merger and acquisition.In cross-border merger and acquisition,latecomer enterprises should clarify the motivation of merger and acquisition,strengthen risk management of cross-border merger and acquisition,strengthen resource integration,and realize win-win synergism through communication and cooperation with the acquirer. |
