CROSS BORDER M&A: CHARACTERISTICS AND PROBLEMS.
1. Chu Hương Lan
2. Nguyễn Thu Phương
3. Đỗ Như Quỳnh
4. Vũ Thị Hiền Thu
TABLE OF CONTENTS
Chapter 1. M&A Overview
1. M&A definition & forms of M&A
3. Motives for cross-border M&A
3.1 Competitive considerations
3.2 Response to a changing environment
3.3 Inefficient capital markets
Chapter 2. Why do firms engage in M&A?
1. Motivations for conducting M&A
1.1 The search for new markets, increased market power and market dominance 1.2 Efficiency gains through synergies
1.3 Greater size
1.5 Personal motivations
2. Cross-border M&A vs Greenfield Investment
2.1 Definition of Greenfield Investment
2.2 Cross-border M&A versus Greenfield Investment
Chapter 3. Case studies
1. Case study of successful acquisition of Swedish Volvo by Chinese Geely 1.1 Introduction
1.2 The change after acquisition
Strategies for success
2. Case study of failed merger of Daimler and Chrysler 2.1 Introduction.
2.2 Reasons for merger
2.3 Daimler SWOT analysis
2.4 Chrysler SWOT analysis
2.5 Case analysis
LIST OF REFERENCES
Cross-border merger or acquisition (CBM&A) has become a popular strategy for firms to enter foreign markets. In the past thirty years, an increasing amount of cross-border M&A activity has been observed, which can be attributed to industry consolidation, privatization, and the liberalization of economies (Boateng, Wang & Yang, 2008).
We can see increasing M&A from existing data, such as UNCTAD (2000) statistics show that cross-border M&A as a percentage of foreign direct investment rose from 52% in 1987 to 88% in 2000. In the first three months of 2007, the global volume of mergers and acquisitions reached $1,130 billion.
Source: United Nations Center for Trade and Development (UNCTAD).
Chapter 1. M&A OVERVIEW
1. Definition and forms of M&A
Based on investment strategy, Merger and acquisition is one type of foreign direct investment beside green investment. M&A is an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture ( Wiki – Cross border M&A) Simply, we can say that the term M&A is used to refer to the consolidation of firms or organizations. When talking about merger and acquisition, people usually use M&A as a phrase. In fact, merger and acquisition are slightly different. Merger – A marriage between two firms. It may be defined as the combination of two or more independent business corporations into a single one. It can be classified into two types: consolidation and statutory merger. The consolidation is a merger when a new company is formed by consolidating assets and operation from two companies. Statutory occurs when one company survives in a case of statutory merger to become a newly established company assuming all of the debt and equity of the other firm that ceased to be a legal entity (WIR 2000).
Acquisition may be defined as an act of one enterprise of acquiring, directly or indirectly of shares, voting rights, assets or control over the management, of another enterprise, usually more then 10% of the total equity.
There are three types of acquisition : full acquisition, majority acquisition...
References: * Thomas Danborg, Master 's Thesis in Business Administration, MBA programme February 2011
* UNCTAD Cross-border M&A Report
* Thomson Financial Securities Data
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