Chapter 6 Difficulty in Overseas Mergers and Acquisitions of Chinese Enterprises

"How do Chinese companies 'go out' with dignity?" This is the title of a report in the British "Financial Times" on November 14, 2006. The article makes a certain analysis of overseas mergers and acquisitions of Chinese companies represented by TCL and Lenovo , the report said: "TCL's setbacks highlight the challenges Chinese companies face when they combine local low-cost manufacturing with mature international brands." In a "flattened" world, China's domestic market has long been integrated into the entire world market. After more than two decades of explosive growth, some Chinese companies have rapidly expanded, and some of them are no longer satisfied. in the local market.In the ever-rising tide of internationalization, they stand on the coastline across the sea, hesitant, impulsive, and the opposite market is full of temptations, and finally, they travel by boat.

In the theme cases of this issue, the four companies we have selected: BenQ, Lenovo, TCL, and Haier are representatives of Chinese companies going international in recent years.In these four mergers and acquisitions about them, we can see a common feature, that is, they merged and acquired the loss-making businesses of well-known multinational companies. Great strides for internationalization. However, unfortunately, some of them have been "punished by impulse" and mergers and acquisitions have brought about a big rout; while others, some of them are still struggling, working hard towards the desired goal, and some have just set foot on the This road is full of longing.We feel sorry for the losers, and we can only sum up their experience and give them a reference; for those who are still on the way, we give them our attention and blessings, and hope that they can go well all the way and go further and further.

After the failure of the acquisition of Thomson's color TV business, Li Dongsheng said that he did not regret it, because "going global is the only way for Chinese enterprises to expand" and "we are definitely moving in the right direction."The same point of view Zhang Ruimin also had a similar expression.Yes, Chinese enterprises need to "go global". Their views are a kind of courage and a kind of wisdom.Whether it is success or failure, we should call them the pioneers of "going out" rather than the so-called martyrs; we should also praise them, because if it weren't for them, perhaps we would never know the fatal risks waiting for us What are they? If not for them, more companies will be fatally hurt, just like our opinion in the theme article Lenovo of this issue: the confusion that Lenovo encounters today is also the confusion that Chinese companies will encounter in the future. And if Lenovo can answer the question, it will become China's answer. This is the meaning of Lenovo China representative.Indeed, these puzzles eventually need to be resolved.

However, there is one point, going out is always risky, which requires us to be cautious and careful when choosing to go out, and we need to consider maturely when choosing the way to go to the international market by taking over the declining assets of multinational companies, and think twice before acting . "How do Chinese companies 'go out' with dignity?" Maybe the theme cases in this issue can bring you different thinking.Similarly, we also hope that in the future, our enterprises will be able to solve the confusion and be more decent when "going out".