Shanghai Automotive and Ssangyong Motor – A Tale of Two Dragons (A)

Xu Leiping () and Steven White
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Xu Leiping: China Europe International Business School, China
Steven White: School of Economics and Management, Tsinghua University, China

Asian Case Research Journal (ACRJ), 2011, vol. 15, issue 02, 305-327

Abstract: Shanghai Automotive (SAIC), one of China's "Big Three" automakers, paid US$571 million in 2004 to acquire a controlling majority share in Ssangyong Motor of South Korea to help SAIC achieve its strategic objectives of developing its own passenger car brand and expanding operations internationally. This first case in the 3-case series covers the decision making leading up to the deal, signed in October 2004 and implemented in January 2005. It provides a basis for comparing modes of growth options (make, buy or ally) and the specific challenges facing Chinese firms and other newly-internationalizing firms as they go abroad. The case also generates discussion of fundamental acquisition issues: target selection, assessment and integration planning.

Keywords: M&A; globalization; growth strategy; target assessment; integration planning (search for similar items in EconPapers)
Date: 2011
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DOI: 10.1142/S0218927511001575

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