Cross-border mergers and acquisitions(M&A),as a form of corporate growth,enable companies to rapidly enter international markets,gain access to the intangible resources and tangible assets of the acquired party and achieve strategic goals.The promulgation of policies such as "One Belt,One Road" has provided policy support for more and more companies to go abroad,with the energy sector seeing the most rapid growth in the scale of M&A.In recent years,the promulgation and promotion of carbon neutral and carbon peak policies have led to the rapid development of the new energy industry,thus promoting the need for battery power,and lithium resources as the core raw material for power batteries,the lithium mining industry has thus been given a new economic growth point,and the strategic position of lithium resources has become increasingly important.Due to the concentrated distribution of lithium resources,enterprises in the upstream,midstream and downstream of China’s lithium mining industry must conduct cross-border mergers and acquisitions if they want to extend the industrial chain and complete the development goal of industrial chain integration,in order to obtain the mining rights of high-quality lithium resources.As a kind of investment,cross-border M&A belongs to the investment strategy of the financial strategy.Therefore,companies can ensure the success of their M&A activities through the precise formulation and effective implementation of their M&A financial strategies,which in turn can guarantee the achievement of their strategic development goals.This paper divides the M&A financial strategy into three stages:pre-M&A investigation and valuation preparation,M&A financing and payment,and post-M&A integration,which includes seven key activities such as whether to invest,selection of investment targets,due diligence,valuation of the target company,structure of financing,payment methods and post-M&A integration.If companies make decisions based on intuition and ignore the development of a financial strategy during a cross-border M&A process,this will often lead to post-merger financial risks and unsatisfactory results,with some M&As ending in failure.This paper uses Tianqi Lithium as the object of analysis and evaluates the performance of Tianqi Lithium’s M&A of SQM based on a financial strategy perspective to increase the perspective of M&A performance evaluation.This M&A enabled Tianqi Lithium to obtain high-quality resources and basically complete the strategic layout of global vertical integration.Tianqi Lithium’s starting point for this M&A is worthy of recognition,but due to Tianqi Lithium’s lack of understanding of its own actual situation,coupled with the unreasonable formulation of its M&A financial strategy,it resulted in a highly leveraged,premium-priced M&A of SQM,which resulted in huge debt pressure and worsened its own financial situation.The paper concludes with a collation of the problems in Tianqi Lithium’s M&A financial strategy and proposes corresponding measures to provide some advice and suggestions for other companies in the lithium mining industry. |