Overseas Merger of Chinese Enterprises after the Financial Crisis
----based on the cooperation between Geely and Volvo
Abstract: Multinational merger has been an essential strategy for our Chinese foreign investment. Constricted by the late beginning of our economy, however, there is a large distance between our enterprises and those of the developed countries. In 2008, many famous businesses were shocked by the unprecedented global financial crisis, under the circumstance it provides a valuable opportunity for us to carry out the overseas investment strategy. Lots of domestic enterprises with the globalization strategy actively merge the excellent foreign businesses. On the other hand, owing to the lack of related experience, many problems including aimless development, international cultural diversity and intellectual property have emerged when carrying out the multinational merger. Therefore, it is necessary to analyze the risk and significance of our multinational merger in order to direct positively Chinese enterprises.
This paper reviews briefly the history of multinational merger of Chinese enterprises, and presents the current problems and confronted risk by illustrating the example that Geely mergers Volvo. Besides, it attempts to bring forth to related strategies and measures from the macroscopic and microscopic angles.