Risk research on transnational merger and acquisition of Chinese petroleum enterprise based on cultural perspective

Abstract

China Petroleum enterprise overseas merger and acquisition is an important means to achieve overseas market expansion. Overseas mergers and acquisitions have great potential, but there are also unpredictable risks. Successful overseas merger and acquisition depends on how to identify, evaluate and control all kinds of risk that exist in the process of M& A. From the cultural perspective, China petroleum enterprises overseas merger and acquisition will inevitably face multiple cultural risks, such as the national culture, business culture and corporate culture. The paper analysis the main influence factors of different cultural risk on the basis of risk source recognition. Through stage identification and comparative analysis technique, cultural risk in each stage of merger and acquisition can be identified. Using SWOT risk analysis method, the impact of various cultural risks and the appropriate strategies can be analyzed and developed. Effective cultural integration is of great significance for controlling cultural risk and even achieving successful merger and acquisition. Cultural integration is a complicated process of cultural cognition, adaptation, integration and sublimation and runs through every stage of the overseas merger and acquisition. According to the cultural risk types in different stages and the degree of cultural strength, the corresponding cultural integration is adopted. The cultural integration is divided into four stages: cognitive stage, adaptive phase, integration stage and sublimation stage.