Cross-Border Mergers and Acquisitions

CHAPTER 15 M&A and Post-Merger Integration Considerations for China and Japan

Robert Ping Yu, Masaki Yamamoto, and Makoto Ideno

PART 1: CHINA

PART 1 LEARNING OBJECTIVES—IN THIS PART, YOU WILL LEARN:

• Current trends of cross-border M&A in China
• Common pitfalls when entering the Chinese market
• Critical issues and approaches that could make or break an M&A deal
• China outbound M&A trends and issues

PART 1 SUMMARY

Part 1 elaborates on trends and issues involving both inbound investment into China by foreign companies and China outbound investment. It describes the motivations behind the inbound and outbound investments, and points out the critical issues that have a significant impact on the success or failure of an M&A project. It also provides some approaches to deal with the issues.

OVERVIEW OF M&A TRENDS IN CHINA

Since the market reform was initiated to shift from a centrally planned to a market-based economy in 1978, China has experienced rapid economic and social development. Joining the World Trade Organization in December 2001, China has shown accelerated growth and progress. ...