Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors

Shen, Yiran (2015) Analysis of Cross-border Mergers and Acquisitions Activities in Emerging Markets: Case Studies based on Automotive Industry of Geely and Tata Motors. [Dissertation (University of Nottingham only)]

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Abstract

Since the last several decades, an increasing number of firms from emerging markets have joined the trend of cross-border M&As through the buying up of a high equity brand in the west, with China and India being among the most active participants. The cases from emerging market automakers are particularly looked into for providing a new insight to the previous research which seems to be irrelevant of industry groups. This research examines and explores three questions: firstly, the proactive motives and reactive motives behind the cross-border M&As of emerging market firms; secondly, the challenges during post-acquisition stage of the M&A deals; thirdly, the rationale that forms EMEs’ choice of cross-border M&As rather than equity joint venture as the entry mode of internationalisation.

By analyzing the case study of Geely’s acquisition of Volvo and Tata Motors’ acquisition of JLR, EMEs proactively conduct M&As for gaining advanced technology and the realising quick access to the rich global distribution channel, whereas the reactive motives vary from the Chinese and Indian firms due to institutional-specific factors. During the post-acquisition stage, challenges of cultural discrepancy may lead to difficulties on staff management, and also the supervision from the government could largely influence the performance. Furthermore, the benefits of a quick global presence, the chance to wipe out a competitor and the right to gain full control over the activities are among the crucial factors that push EMEs to adopt M&As instead of EJV as the main entry mode of internationalisation.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Shen, Yiran
Date Deposited: 24 Mar 2016 09:49
Last Modified: 26 Oct 2016 10:08
URI: http://eprints.nottingham.ac.uk/id/eprint/29959

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