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"Overseas mergers and acquisitions have become one of the ways for companies to acquire new quality productivity, helping them to improve their core competitiveness and broaden their international vision." On August 15, the "Modern New State-owned Enterprise Seminar" (the seventh session) was held on the Bund in Shanghai. Lin Li, president of Jinzheng (Shanghai) Asset Appraisal Co., Ltd., was interviewed by The Paper at the meeting and introduced the significance of overseas mergers and acquisitions to corporate development.

Chinese companies have recently become more enthusiastic about going overseas. According to the Ministry of Commerce, in 2023, the number of non-financial enterprises directly invested by China overseas reached 7,913, an increase of 1,483 from the previous year, the largest increase in history. The number of non-financial overseas investment enterprises and the total amount increased by 23.1% and 11.4% year-on-year respectively.

According to incomplete statistics conducted by the Shanghai Securities News at the end of last year, from November to mid-December last year, dozens of companies disclosed their overseas acquisition and investment trends. The locations of the acquisition and investment targets involved Europe, Southeast Asia, North America, etc., and they mainly revolved around industrial transformation and upgrading, deploying more advanced and upstream key technologies or resources.

"According to the research and business practice experience of Jinzheng Evaluation, Chinese companies' overseas mergers and acquisitions are mainly concentrated in industries such as semiconductors, high-end manufacturing, energy, resources and infrastructure construction. Especially in recent years, with the transformation and upgrading of the global energy structure, state-owned enterprises have increasingly frequent mergers and acquisitions in industrial chains such as power batteries, clean energy power generation and energy storage, highlighting their high attention to the new energy field." Lin Li said that in recent years, with the deepening of industrial upgrading, Chinese companies' investment and mergers and acquisitions in Southeast Asia are gradually increasing.

Lin Li believes that overseas mergers and acquisitions are an important way for enterprises to transform and upgrade, acquire advanced technologies, and expand international markets. He said that through overseas mergers and acquisitions, enterprises can quickly improve their own technological capabilities and international competitiveness, and strengthen cooperation with local companies.

Jiang Xiao, chairman of Jinzheng (Shanghai) Asset Appraisal Co., Ltd., also believes that through mergers and acquisitions, companies can quickly master cutting-edge technologies and patents in the industry, accelerate product innovation and technological research and development, and improve their competitiveness in the international market; at the same time, overseas mergers and acquisitions can help companies broaden their international vision, deepen their understanding of global economic rules and market environment, and provide opportunities for companies to optimize their talent structure.

Jiang Xiao reminded that companies should also be aware that overseas mergers and acquisitions face many challenges, such as geopolitical risks, policy reviews, cultural differences, tax risks, market environment differences, etc. Therefore, companies need to conduct comprehensive commercial due diligence when conducting overseas mergers and acquisitions, identify business risks, and lay the foundation for post-investment integration.