The Dynamics of M&A Strategy

China's banking sector has witnessed significant inbound M&A traffic by developed market banks in recent years. At the same time, Chinese banks have risen to become some of the world's biggest banks. Along with these massive market values and financing capabilities have come global ambitions culminating in first outbound M&A moves. This study exploratively researches the relationship between developed market banks' inbound M&A into China and Chinese banks' outbound M&A. Based on a conceptual discussion, case studies and expert interviews an explanation model is developed outlining the drivers and barriers of Chinese banks' outbound M&A and the factors in the inbound-outbound relationship. This model enables developed market banks to analyse potential M&A reactions by incumbents. Finally, dynamic M&A market entry strategies are derived, which explicitly account for future incumbent outbound M&A moves.

Autorentext

Björn B. Schmidt, born 1980, studied Business Administration at Warwick Business School and Kingston University London, where he obtained an MSc with Distinction and a BA (Hons), respectively. Following his studies he worked for a global bank, ultimately as Associate in a corporate strategy function. He earned his doctorate from Potsdam University in 2010 and currently is a Junior Executive with a leading media corporation.

Klappentext

Chinäs banking sector has witnessed significant inbound M&A traffic by developed market banks in recent years. At the same time, Chinese banks have risen to become some of the world s biggest banks. Along with these massive market values and financing capabilities have come global ambitions culminating in first outbound M&A moves. This study exploratively researches the relationship between developed market banks inbound M&A into China and Chinese banks outbound M&A. Based on a conceptual discussion, case studies and expert interviews an explanation model is developed outlining the drivers and barriers of Chinese banks outbound M&A and the factors in the inbound-outbound relationship. This model enables developed market banks to analyse potential M&A reactions by incumbents. Finally, dynamic M&A market entry strategies are derived, which explicitly account for future incumbent outbound M&A moves.

Inhalt

Contents: Market entry in strategic management Static versus dynamic analysis The action-response dyad and firm interaction Research status The explanatory value of the market-based view and of supplementing theoretical approaches Case studies of Chinese outbound M&A Semi-structured expert interviews Dynamic M&A market entry explanation model Recommended courses of action Examples of dynamic M&A market entry strategies Research and management contribution and implications.