Strategic Mergers and Acquisitions in China: an Overlook at Brembo S.p.A acquisitions in Chinese Market

Abstract

This master’s degree thesis work provides an analysis of mergers and acquisitions (M&As) together with the presentation of a case study: the investments of Brembo S.p.A, leader company in the production of automotive components, in the chinese market. The first part of the work is focused on the analysis of M&As’ structure, as domestic brownfield form of investment and then as cross-border. All the main steps in the realization of a merger or acquisition are presented. In the second part the main focus shifts to the chinese market: the most relevant features and the principal factors of differentiation from western environment. These cultural, economic and must important political influences represent the sources of failure or success for foreign companies who look for growth and expansion in such a distant market like China. An interesting topic in second chapter is the evolution of this market, the trend that is bringing China from the country target for delocalizing low-cost manufactory productions to the core of high-end quality products, in line with recent governmental policies. Then all the aspects a firm must take into account in managing the acquired company, from the HR in China to the governance. The third part focuses on Brembo’s acquisitions in China, and narrowly on chinese automotive industry. This master’s degree thesis aims at presenting the actual effectiveness of an increasingly recurred form of investment in the second world’s biggest economy, through one of the most successfully case history in Brembo.