Analysis of Success Factors of China’s Overseas M&as

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Guangdong University of Technology

School of Management

Term Paper of International Business

(Analysis of Success Factors of

China’s Overseas M&As)

Group No.: 1

(梁琪恩 徐萍萍 王莹 尹丽媚)

May 22th, 2014

Abstract: More than half of China’s overseas acquisition attempts have not been completed,and the chance of success is much lower than worldwide. This study investigates the reasons behind the low likelihood that an acquisition deal is completed,by analysing some China’s M&A cases in recent years. The study found that multi-level determinants influence the outcome of China’s overseas acquisitions. Based on the findings, we conclude that the distinctive political and economic environment; guidance and support from global experience; capabilities of the acquirers;and the situation of target companies all affect Chinese acquisition deals.

Keywords: China, overseas,M&A, merger, acquisition,success factors.

1.1 China’s overseas M&As

The global financial crisis in 2008 brought Chinese corporations not only challenge but also opportunity.International asset devalued,and,in the meantime,many companies softed the terms of M&A(Mergers and Acquisitions)by foreign companies,for getting rid of the effect of financial crisis.In this situation,large-scale overseas M&As were taken by Chinese corporations and the number is still on rise nowadays.

|Value of cross-boarder M&As, by China, 2006–2012 (continued) |

|(Millions of dollars) |

| |Net purchases |

| |2006 |2007 |2008 |2009 |2010 |2011 |2012 |

|China |12 090 |- 2 282 |37 941 |21 490 |29 578...