Cross Border Mergers And Acquisitions: Zhejiang Private Enterprises International Trade Is Worth Learning

In 2005, Geely Group acquired a 68% stake in ProperGlory, UK, P. In 2004, Geely Group, through its acquisition of ProperGlory32% stake, indirectly controlled ProperGlory's Hongkong listed subsidiary, "Guo run Holdings", and renamed it "Geely Automobile". The acquisition of surplus stock made Geely Group fully control Geely Automobile and achieve the purpose of backdoor listing. < /p >
< p > this is only an example of cross-border mergers and acquisitions of private enterprises in Zhejiang. Since China put forward the strategy of "going out" in 1999, Zhejiang has been in the forefront of the country and its level has been continuously improving. The famous private enterprises in the province have launched a series of mergers and acquisitions in developed countries and regions. Nowadays, overseas M & A has become an important way for Zhejiang private enterprises to "go out" to realize the < a href= "//www.sjfzxm.com/news/list.aspx Classid=101112107102" > transnational development < /a >, and the growing Zhejiang private enterprises have become a new force for overseas mergers and acquisitions of Chinese enterprises. < /p >
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Overseas investment in Zhejiang province started in 1982, but cross-border mergers and acquisitions started late in P. In the late 1990s, with the rise of the fifth global mergers and acquisitions, and in early 1999, our government established the "going global" strategy, which greatly encouraged the enthusiasm of Zhejiang's private enterprises in cross-border mergers and acquisitions. < /p >
< p > private enterprises in Zhejiang speed up the pace of overseas M & A by virtue of their "institutional advantages". In October 2000, Wanxiang Group purchased Scheler company of the United States. In August 2001, it formally acquired UAI company listed on the NASDAQ Exchange, and pioneered the acquisition of overseas listed companies by private enterprises in Zhejiang and even the whole country. In the next few years, the group has acquired many overseas enterprises such as AS, ID, LT and QAI, and has begun to set foot in the overseas financial and insurance industry. < /p >
< p > with the march of transnational corporations such as Wanxiang, HOLLEY, AOKANG and Geely, some small and medium-sized private enterprises with rapidly increasing strength are also beginning to try. In 2003, Xiaoshan's mechanical equipment manufacturer "Zhejiang Jiali", on the basis of the acquisition of a German company in the past, invested another US $5 million to set up the Zhejiang Jiali Germany R & D center. Its purpose is to acquire the core technology applied to its domestic industry through the acquisition of German Enterprises, the use of German talents in R & D, and the bypass of intellectual property barriers. In 2004, the company invested about 2000000 US dollars to carry out merger negotiations with a number of German petrochemical enterprises. < /p >
< p > at present, the field of cross-border M & A in Zhejiang is mainly concentrated in the manufacturing fields such as Electromechanical, meter, leather and clothing. In cross-border mergers and acquisitions, most of the overseas enterprises in difficult position are chosen as merger and acquisition targets. Mergers and acquisitions are mainly concentrated in the relatively developed market economy countries such as the US and < a href= "http:// www.sjfzxm.com/news/list.aspx Classid=101112107108" > EU /a >. < /p >
< p > expert analysis shows that advanced technology and good financing environment in developed countries can provide a better external environment for cross-border mergers and acquisitions of private enterprises in Zhejiang. At the same time, the developed market economy countries have relatively few restrictions on cross-border mergers and acquisitions, and the policies and regulations are highly transparent and easy to operate. In addition, developed market economy countries are the main export markets of Zhejiang private enterprises. They can use M & A objects as bridgeheads to drive exports and expand economic cooperation. < /p >
< p > in the face of the achievements of "going out", some problems also gradually appear. In recent years, in the global M & A, many enterprises take the construction of new and higher level core competitiveness as the main purpose, in order to achieve lasting competitive advantage of enterprises. On the contrary, the motivation of cross-border mergers and acquisitions of private enterprises in Zhejiang is still at a low level, and the main reason is to win market share and acquire core technology. The reason why HOLLEY Group acquired the core technology department of Philip CDMA is to acquire core technology and realize strategic transformation and diversification from traditional meter manufacturing enterprises to high-tech enterprises. < /p >
At the same time, the overseas mergers and acquisitions of private enterprises in Zhejiang are still at the initial stage, and the internationalization of most enterprises, especially private enterprises, is still in the exploratory stage. The "go global" enterprises are dominated by trade enterprises, but have not entered the international market in a big way, and have carried out transnational operations. Therefore, at present, Zhejiang's enterprises that are truly internationalized and capable of internationalization are still few, but there are few enterprises that can successfully achieve transnational development through cross-border mergers and acquisitions. < /p >
< p > in addition, the scale of Zhejiang private enterprise < a href= "//www.sjfzxm.com/news/list.aspx Classid=101112107101" > overseas merger and acquisition < /a > is expanding, but it is limited to the strength of enterprises and the lack of financing means and channels, and the scale of individual transactions is still small. For example, Wanxiang Group buys only US $420 thousand from the US Scheler company. The transaction volume of the UAI company is US $2 million 800 thousand. The cost of HOLLEY group's acquisition of CDMA Mobile Communication Department of the Philip group is only a few million US dollars, which is still quite large compared with that of the M & A case in the world. < /p >