Research On Cross-border Mergers And Acquisitions Of Manufacturing Enterprises From Value Chain Reconstruction Perspective

Manufacturing industry is the pillar industry of China.At present,the types and output of manufacturing products in China are among the top in the world.Since1949,China’s manufacturing system has been gradually established to meet the basic needs of people.After the reform and opening up,the manufacturing industry had the vigorous development,and products made in China can not only satisfy domestic demand,but also go to the world.Many developed countries have transferred their industries to China for the sake of China’s abundant labor and market resources,which provide convenience for China’s manufacturing industry to connect with the international market.Although cheap labor and rich market resources have become the advantages of the manufacturing industry,when they are gone,technology has become a short board of China’s manufacturing industry.China’s manufacturing industry is in urgent need of developing core technologies and shifting its focus to high-end manufacturing products.Due to the economic globalization,the resources and status of various countries are gradually changing,and the reconstruction of global value chain has become a major trend of economic development in the future.Limited by technology,China has always been in the middle and low end of the global value chain.Therefore,Chinese manufacturing enterprises need to take the initiative to participate in the value chain reconstruction process,break the traditional industrial model,and improve the position in the international division of labor.Cross-border M&A is an important way for Chinese manufacturing enterprises to participate in the value chain restructuring.Through cross-border M&A,industrial upgrading and technological innovation can be realized,so as to realize the value chain upgrading.At present,there are relatively few studies on cross-border M&A from the perspective of value chain restructuring.This paper aims to study cross-border M&A and value chain restructuring of China’s manufacturing industry,and analyzes a series of cases of cross-border M&A of AZSP Co,hoping to provide some enlightenment for cross-border M&A of China’s manufacturing industry.The article consists of seven parts:The first section is the introduction,which involves the background and research framework.Meanwhile,it points out the contributions and deficiencies in the writing.The second section consists of theory and literature review,it involves the concept and the theory of value chain.Then the article has carried on the related literature research,the study about cross-border M&A and reconstructing value chain are summed up and the related conclusion are introduced.The third section is the background part,it involves industry status quo of cross-border M&A in manufacturing,sorts out the domestic policies and systems of cross-border M&A in manufacturing enterprises,and briefly introduces the situation of cross-border M&A in the manufacturing industry.The fourth section is a brief description of the path of value chain reconstruction,including global value chain reconstruction,industrial value chain reconstruction and internal value chain reconstruction,and introduces the path of value chain reconstruction through cross-border M&A.The fifth section introduces a series of cross-border M&A cases of AZSP Co,and summarizes the cross-border M&A cases of AZSP Co in the recent ten years,so that everyone can have a better understanding of the M&A background.The sixth section evaluates the effectiveness of the M&A behavior from the Angle of cross-border M&A performance and value chain reconstruction path,analyzes the path of the value chain reconstruction from integration,technology acquisition,brand,market expansion and diversification,and then evaluates the performance of cross-border M&A through the event study method and financial index analysis.Financial analysis mainly includes profit ability,operation ability,growth ability and debt paying ability.The seventh section is the conclusion.Based on the above evaluation,it summarizes the achievements of China’s manufacturing cross-border M&A performance and value chain restructuring.We can learn the valuable experience of cross-border M&A and recognize the shortcomings of cross-border M&A,which is expected to be of benefit to future M&A of the manufacturing industry.