Experts say the trap of overseas mergers and acquisitions is more rational than pie

Recently, Sichuan Tengzhong's acquisition of Hummer, Chinalco and Rio Tinto Group broke up two news has attracted the attention of all sectors of the community, Chinese enterprises overseas mergers and acquisitions of the topic has been pushed to the forefront.　　At the second China Open Forum held in Ningbo today, the reporter interviewed the State Council Development Research Center Enterprise Deputy Director Zhang Wenqui, Zhang Wenqui called for overseas mergers and acquisitions "traps larger than pie", domestic enterprises need to be treated rationally. Sichuan Tengzhong mergers and Acquisitions Hummer incident was seething, but the State Council Development Research Center Enterprise Deputy Director Zhang Wenqui to the prospects of cooperation between the two sides is not optimistic, he said: "Teng in the acquisition of Hummer, it is you horseback riding or horse riding still do not know." Then how to expand Sales is the most important, there is no sales. A Hummer that sells 70,000 cars a year in the hottest time. Last year only sold 20,000 cars, sales can not meet the standards of nothing. I'm not optimistic. "In recent years, the enthusiasm of Chinese enterprises to overseas mergers and acquisitions, the 2004 overseas mergers and acquisitions amount to only 7 billion U.S. dollars, but this year in 1-February, the amount of overseas mergers and acquisitions has reached 21.8 billion U.S. dollars, 5 years ago 3 times times." Zhang Wenqui used the phrase "enthusiasm is insufficient reason" to judge this phenomenon: "Chinese enterprises are now facing a major development strategy period, the financial tsunami for our Chinese enterprises to seize this opportunity, is indeed a good strategic opportunity." But we need a sense of reason in addition to passion. Zhang Wenqui cited Japan as an example. In the 80 's, Japan quickly stepped into the stage of large-scale overseas investment, now more than 20 years later, many of the overseas mergers and acquisitions by Japanese enterprises failed, the success rate of only about 30%. In this respect, he said: "From Japan and South Korea overseas mergers and acquisitions experience, it is more traps than pie." We analyze Chinese enterprises, compared with Japanese and Korean enterprises, have our strengths and weaknesses. Our shortcomings lie in the ability to integrate poor, this aspect we are inferior to Japanese and Korean enterprises. Zhang Wenqui that the most important thing for Chinese companies to take care of in overseas mergers and acquisitions is to integrate the risks: "Mergers and acquisitions, the biggest risk after the purchase." How to integrate after the purchase? So many enterprises are very happy to buy when the integration of the time is very painful. This integration risk or more precisely to adjust the risk, you buy it after you have to make adjustments, these adjustments can not move, the problem here. "The recent death of Chinalco and Rio Tinto has once again sounded a wake-up call to domestic companies, Zhang Wenqui called for domestic enterprises to participate in overseas mergers and acquisitions must be a number of rational thinking:" I just said, passionate and rational, passionate, more than rational, a little more rational, we go to a good look at our acquisition objectives, What is the type of mergers and acquisitions, and then targeted to do a good job acquisition plan, in addition to improve their overall assessment of their adjustment capacity. Do you have the ability to adjust to mergers and acquisitions, even with the ability to adjust? We should take a comprehensive look at this. (Reporter Cao Meili)