Comparative Analysis Of Cross-border M&A Cases Between Geely And SAIC

With the rapid development of economic globalization and world economic integration,the internationalization process of enterprises is accelerating,and the market competition is becoming increasingly fierce.Due to the fierce competition in the domestic and international markets,many Chinese automobile enterprises have embarked on the road of cross-border M&A.Cross-border M&A bring good returns to enterprises,but the benefits are often accompanied by risks.According to the data of the Ministry of Commerce,the success rate of China’s cross-border M&A is less than50%,and most of the cross-border M&A eventually fail,failing to achieve the expected effects,and even after the cross-border M&A,there are various problems.Although there are a lot of in the study of past successful cases of China’s automobile enterprises transnational M&A,but the auto industry in China,cross-border M&A failure case study of rare,this article selects the enterprise of transnational M&A in China auto industry-geely with saic,the comparative analysis of geely group from Volvo group successful cases with saic M&A ssangyong group of failures,and based on the comparative analysis in many aspects of two enterprises,summing up experience and revelation,in order to help the new era of automobile enterprises to avoid the part of the minefield in cross-border M&A.Transnational M&A is presented in this paper,on the basis of relevant theories,from the company profile,M&A background and motivation,M&A process,the consolidation process and financial indicators in five aspects to introduce giovanni cobolli gigli acquisition Volvo cars and Shanghai automotive M&A case of South Korea’s ssangyong,and geely and saic’s background,motivation of transnational M&A,merger and acquisition process,the consolidation process,and compares major financial data.On the whole,Geely’s cross-border M&A are less difficult and have better synergies,and the integration process is more successful than that of SAIC.Starting from the main financial data,Geely’s profitability,debt paying capacity and operating capacity are better than SAIC in the years after the acquisition.On the contrary,SAIC quickly recovered and adjusted after the failure of its merger in 2009,making its index data quickly recover to or even exceed the level before the merger.Finally,this paper based on the success of giovanni cobolli gigli acquisition Volvo case with saic M&A ssangyong’s failure case,the auto industry in the future on crossborder M&A activities such as enterprise provide experience revelation for cross-borderM&A will need to consider the impact of cultural differences on M&A,Enterprises should make full reference to various financial indicators,increase investment in research and development to improve the technical level,hire professional consultancy,due diligence,strengthen human resources integration,etc.