The Motivation And Performance Analysis Of Private Enterprises’ Cross-border Mergers And Acquisitions Under The “Belt And Road” Initiative

The “ Belt and Road ” initiative is a vital cooperation initiative for our country to participate in the construction of the world economy.It was first proposed by General Secretary Xi Jinping in 2013.The“ land and maritime Silk Road ” initiative not only provides Chinese companies with broad options for overseas investment in the 66 Asian,European,and African countries along the route;But also provides unprecedented opportunities for development in cross-border mergers and acquisitions by Chinese companies.Nowadays,the domestic and international competition faced by Chinese enterprises is becoming increasingly fierce.Cross-border mergers and acquisitions have become one of the important ways for them to expand market share,explore international markets,achieve synergies and maximize shareholder wealth.According to the current research literature of scholars,there are many literatures on the motivation and performance analysis of our country’s state-owned enterprises’ cross-border mergers and acquisitions,but the “ Belt and Road ” initiative and the motivation and performance analysis of private enterprises’ cross-border mergers and acquisitions There is less literature.Based on this,this article selects Kibing Group as the main body of the case,focusing on the analysis of the motivations of Kibing Group’s cross-border mergers and acquisitions under the“ Belt and Road ” initiative and the performance changes after the merger.The cross-border M&A case occurred in 2015,and the effective data after the M&A has been six years,and there is a solid data basis to judge the performance changes after the M&A,and more accurate research conclusions can be obtained.At the same time,the acquirer Malaysia Kibing Company is located in Malaysia.Malaysia is one of the first ASEAN countries to respond to and support the “ Belt and Road ” initiative.Therefore,the cross-border M&A case of Kibing Group’s cross-border acquisition of Malaysia Kibing Company can be very typical.This article is divided into five chapters: The first chapter is the introduction of the article,which is composed of five sections: research background and significance,domestic and foreign literature review,technical route and main content,research methods,and research innovations and shortcomings;the second chapter is Definition of related concepts and theoretical basis.The first clarified the definition of the concepts related to the “Belt and Road ” initiative and cross-border mergers and acquisitions.The second expounds the motivation theory of mergers and acquisitions used in this article,mainly including shareholder wealth effect theory,synergy theory and market power theory.The third point clarifies the M&A performance evaluation method used in this article,that is,the Balanced Scorecard;Chapter Three is the analysis of the status quo of the cross-border mergers and acquisitions of private enterprises under the “ Belt and Road ” initiative.Firstly,it focuses on the cross-border mergers and acquisitions of private companies under the “Belt and Road” initiative.The characteristics are analyzed,and then the opportunities and risks brought by the “ Belt and Road ” initiative for private enterprises’ cross-border mergers and acquisitions are respectively elaborated;Chapter Four is the focus of the article,and the “ Belt and Road ” initiative is selected.Kibing Group’s cross-border merger and acquisition of Malaysia Kibing Company is a specific case analysis: first,a specific introduction to the merger and acquisition process and the enterprises of both parties are carried out.Then it analyzes the motivations of Kibing Group’s mergers and acquisitions,namely,responding to the “ Belt and Road ” initiative under the condition of serious overcapacity in the domestic glass manufacturing industry,actively exploring overseas markets and realizing post-merger synergies to improve the company’s benefits.Finally,the performance evaluation system of Kibing Group after cross-border mergers and acquisitions is comprehensively constructed from the four dimensions of the balanced scorecard.The fifth chapter is the conclusions and recommendations of the article.First,through the analysis and summary of the first four chapters,it is concluded that the cross-border M&A not only realized the motivation of the M&A,but also made the performance significantly improved.Therefore,the M&A was successful.;Then,it provides case suggestions and enlightenment for private enterprises in China to follow the “ Belt and Road ” initiative to go global: that is,private enterprises must clarify the company’s current situation and future development strategies;seize opportunities and rationally use policy advantages;improve mergers and acquisitions integration,and give play to post-mergers Synergies,develop the core competitiveness of enterprises,and strengthen the risk prevention of cross-border mergers and acquisitions.