| With the development of international trade in China,more and more enterprises have started to implement internationalization strategies,and commercial banks in China have gone abroad to actively expand overseas markets in response to the needs of their customers’ overseas development and their own globalization.Constrained by the market access conditions of various countries,cross-border mergers and acquisitions are an important way for commercial banks to carry out their international strategic layout.Since2006,a new wave of mergers and acquisitions(M&A)has been launched by commercial banks in China with the support of policies,and as the cross-border of commercial banks in China lack relevant experience to guide them,their development is still immature and there is still much room for growth in the future.This article takes the M&A of BIC Bank in Brazil by China Construction Bank(CCB)as its research content.After combing through the literature on synergistic effects of cross-border bank mergers and acquisitions,the research ideas are derived.The article first uses a case study approach to analyse the industry background,the basic situation of the two parties,the motivation for the M&A,the history of the M&A and the benefits that the M&A will generate.The study found that CCB’s acquisition was not based on profitability,but rather on longer-term considerations.The acquisition would facilitate CCB’s entry into the Brazilian and South American markets and further develop its globalization strategy.Then,the event study method was used to analyse the impact of this event on CCB’s short-term share price,and the results showed that the merger brought significant excess returns to CCB.A long-term evaluation system was then constructed to compare the pre-merger and post-merger financial indicators,and the entropy method was used to assign weights to these financial indicators to comprehensively analyse the long-term synergies of the merger.The results of the study showed that the long-term synergies of this merger were not significant in terms of financial data.Overall,the strategic importance of this M&A outweighed the financial benefits and it was a successful M&A.This M&A provides certain experience for China’s commercial banks to learn from.Firstly,before the M&A,banks should clarify the strategic objectives of the M&A,and the M&A activities should be in line with their own long-term strategic layout;secondly,banks should be cautious in choosing the M&A target and the M&A area,and analyze the M&A target and the M&A area comprehensively from all aspects;finally,banks should always be prepared to aim for the best M&A timing. |
