Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors

Since the last several decades, an increasing number of firms from emerging markets have joined the trend of cross-border M&As through the buying up of a high equity brand in the west, with China and India being among the most active participants. The cases from emerging market automakers are pa...

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Main Author: Shen, Yiran
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Online Access:https://eprints.nottingham.ac.uk/29959/
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author Shen, Yiran
author_facet Shen, Yiran
author_sort Shen, Yiran
building Nottingham Research Data Repository
collection Online Access
description Since the last several decades, an increasing number of firms from emerging markets have joined the trend of cross-border M&As through the buying up of a high equity brand in the west, with China and India being among the most active participants. The cases from emerging market automakers are particularly looked into for providing a new insight to the previous research which seems to be irrelevant of industry groups. This research examines and explores three questions: firstly, the proactive motives and reactive motives behind the cross-border M&As of emerging market firms; secondly, the challenges during post-acquisition stage of the M&A deals; thirdly, the rationale that forms EMEs’ choice of cross-border M&As rather than equity joint venture as the entry mode of internationalisation. By analyzing the case study of Geely’s acquisition of Volvo and Tata Motors’ acquisition of JLR, EMEs proactively conduct M&As for gaining advanced technology and the realising quick access to the rich global distribution channel, whereas the reactive motives vary from the Chinese and Indian firms due to institutional-specific factors. During the post-acquisition stage, challenges of cultural discrepancy may lead to difficulties on staff management, and also the supervision from the government could largely influence the performance. Furthermore, the benefits of a quick global presence, the chance to wipe out a competitor and the right to gain full control over the activities are among the crucial factors that push EMEs to adopt M&As instead of EJV as the main entry mode of internationalisation.
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spelling nottingham-299592017-10-19T14:50:35Z https://eprints.nottingham.ac.uk/29959/ Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors Shen, Yiran Since the last several decades, an increasing number of firms from emerging markets have joined the trend of cross-border M&As through the buying up of a high equity brand in the west, with China and India being among the most active participants. The cases from emerging market automakers are particularly looked into for providing a new insight to the previous research which seems to be irrelevant of industry groups. This research examines and explores three questions: firstly, the proactive motives and reactive motives behind the cross-border M&As of emerging market firms; secondly, the challenges during post-acquisition stage of the M&A deals; thirdly, the rationale that forms EMEs’ choice of cross-border M&As rather than equity joint venture as the entry mode of internationalisation. By analyzing the case study of Geely’s acquisition of Volvo and Tata Motors’ acquisition of JLR, EMEs proactively conduct M&As for gaining advanced technology and the realising quick access to the rich global distribution channel, whereas the reactive motives vary from the Chinese and Indian firms due to institutional-specific factors. During the post-acquisition stage, challenges of cultural discrepancy may lead to difficulties on staff management, and also the supervision from the government could largely influence the performance. Furthermore, the benefits of a quick global presence, the chance to wipe out a competitor and the right to gain full control over the activities are among the crucial factors that push EMEs to adopt M&As instead of EJV as the main entry mode of internationalisation. 2015-09-13 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/29959/1/electronic%20version.pdf Shen, Yiran (2015) Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors. [Dissertation (University of Nottingham only)]
spellingShingle Shen, Yiran
Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors
title Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors
title_full Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors
title_fullStr Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors
title_full_unstemmed Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors
title_short Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors
title_sort analysis of cross-border mergers and acquisitions activities in emerging markets: case studies based on automotive industry of geely and tata motors
url https://eprints.nottingham.ac.uk/29959/