Macroeconomics Case Study

The Dragon is coming-Chinese M&A’s Outside China

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Abstract:
Chinese companies that were earlier known for being a cheap source of manufacturing had been attempting to transform themselves into global companies through the Merger and Acquisition route. With a growing economy, China eyed for channels of growth in order to meet its need for natural resources and raw materials. The case provides a brief on the reasons behind the overseas M&A’s by the Chinese companies and also analyses the level of success in their attempts. The case provides scope for discussion on M&A’s, SWOT analysis on the Chinese companies and the role of the Government in aiding the companies to achieve their global ambitions.

Pedagogical Objectives:

• The case helps in understanding how M&A’s make or break a company
• It points out the mistakes that companies make while going for M&A and elaborates on the requirements for a successful merger/acquisition
• Also highlights the importance of the Government’s role in making the companies globally competitive.

Keywords : Macroeconomics Case Study, Mergers and acquisitions (M&A), Lenovo, IBM, China, Asia, TCL, CNOOC (China National Offshore Oil Company), Haier, Oil, Metal, Chinese