Overseas mergers and acquisitions need to enhance entrepreneurial spirit

The failure of Chinalco's acquisition of Rio Tinto, experts say, in addition to the economic "abacus", there is a deeper reason (this reporter Zhu Fina Guo Jinhui) The most concerned Chinese companies to date the largest overseas investment transactions, in the final approval period of only 10 days, due to Rio Tinto's breach of the termination.　　June 5, Chinalco announced that it confirmed that the Rio Tinto Group Board had withdrawn its recommendation on the February 12 announcement of the strategic cooperation deal, and will be the basis of the agreement to the Chinalco to pay a 195 million-dollar break-up fee. The game behind the breach of the deal on its own unilateral breach of the ACT, Rio Tinto's argument is, because of the recent changes in the market, and Chinalco's transaction has not been so valuable. In other words, Rio Tinto was under pressure from 38.7 billion of billions of dollars in debt, and Chinalco agreed to a capital injection.　　But as the world economy picks up, the price of international commodities is starting to rise again, Rio Tinto has rallied in the past few months, and the pressure to cut capital has apparently made Rio think the most difficult moment has passed and Chinalco's injection has become less urgent. At the same time, many in the industry also pointed out that, in addition to the economic "abacus", Rio Tinto breach of the deeper reasons. Mei Xinyu, an associate researcher at the Ministry of Commerce, told the China Economic Times reporter that the breach was caused by excessive politicization and the obstruction of rival BHP Billiton. "In a broader sense, investment from China has been the hottest issue in Australian politics this year," he said. "Mei Xin Yu said. Some Australian media, academic institutions, lawmakers, opposition parties, and other measures to oppose and obstruct the injection of Chinalco, and even sensational to a normal market transactions and "China threat" to a piece of "public concern, political hands, market expectations to lure the supremacy of interests, strict penalties for default provisions and checks and balances lack of chips, Corporate background and the lack of a low profile and many other reasons, resulting in the failure of mergers and acquisitions.　　"World Bank scholars, European and American Association members of the United States Branch of the director of Cheng Yongru accept this reporter interview summary." The two Billiton alliance will be questioned once abandoned the acquisition of Rio Tinto BHP Billiton after Chinalco, again into the bureau.　　Rio Tinto, which gave up Chinalco, instead announced that it would merge its main Australian operations with BHP Billiton, creating a 50% per cent stake in its iron ore joint venture.　　As of press time, the Chinese government did not make a formal response. Cheng Yongru said China needed to raise serious questions about Rio Tinto's iron ore joint venture with BHP Billiton and consider antitrust scrutiny and global co-ordination.　　The company also said BHP Billiton's tie-up with Rio Tinto would be subject to more antitrust scrutiny.　　The Chinese Iron and Steel Association also said that while the new alliance between Rio Tinto and BHP Billiton is not yet known as a new monopoly of the iron ore market, there will be antitrust measures to deal with if monopolistic tendencies begin to emerge. But steel analysts said they felt the risk of a greater monopoly in the iron ore supply market would be caused by the formation of a joint venture between Rio Tinto and BHP Billiton. For China, compared with the current iron ore suppliers Rio Tinto, BHP Billiton and the Brazilian Vale of TripodPattern, the tie-up between Rio Tinto and BHP Billiton clearly poses a greater monopoly threat, this will make China more leeway in the negotiations on the price of iron ore contract this year. The difficulties of overseas mergers and acquisitions, Mei Xinyu said, although the setback will have a certain impact on China's overseas investment,　　But overseas investment is not limited to mergers and acquisitions, so the direction of Chinese enterprises ' overseas investment will not change.　　For Chinese companies to go out, Cheng Yongru that market opportunities are fleeting, Chinese companies need to enhance entrepreneurship, need foresight and leadership, act decisively, ahead, and have options. Chengmanjiang, an international analyst at BOC, told our correspondent that the large-scale overseas acquisitions of Chinese enterprises still required a process, especially the acquisition of resources, the international environment is a gradually accepted process. She believes that Chinese enterprises to buy overseas resources enterprises, should focus on the current has not grown up, relatively filial piety has long-term development value of the company.