| Summary: | Within the developing of globalization, cross-border M&A is deemed as an effective strategy to achieve internationalization. As the world’s largest emerging country, China has experienced rapid economic growth and increasingly participated in foreign investments. The Chinese automobile industry occupies a significant status in Chinese foreign investment. This dissertation targets to conduct research on motivation theory of cross-border M&A and potential problems in the integration process by analyzing the case of Chinese Company X’s acquisition of Swedish Company Y.
Existing literature on cross-border M&A highlights issues with efficiency theory, empire-building theory, monopoly theory, valuation theory and disturbance theory. Apart from motivation theory, the possible influencing factors in the integration process are explored in order to discover potential challenges during the acquisition. Furthermore, qualitative research method is adopted and semi- structured interview is applied as the primary data collection method.
According to the findings and discussion, research questions explore a series of motives promoting cross-border M&A and potential challenges in the integration process, especially cultural difference between multinational companies, with the case of Company X’s acquisition of Company Y. Furthermore, the analysis of this acquisition study provides a more in-depth further sight to Chinese automobile industry’s cross-border M&A issues.
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