Cross-Border Merger and Acquisitions (M&A) Challenges and Opportunities: China’s Largest Pharma M&A Case Studies

The objective of this book chapter is to provide readers with some ideas and insights into cross-border M&A processes by sharing three real-life cases. Rather than offering a textbook version of the subject, the chapter will focus on the global blood plasma sector, a sub-segment of the pharmaceutical industry. By the end of the chapter, readers should have developed a basic understanding of the following: (1) Cross-border M&A processes; (2) Key considerations; (3) Key challenges and ways to deal with them; and (4) Basic terminologies through case context. The motivation for the acquisition is threefold: high entry barriers, strong market demand and profitability and the potential for synergies. However, the pursuit of this strategy is not without its challenges. At the macro level, the regulatory approval process poses significant hurdles. The Committee on Foreign Investment in the United States (CIFIUS), the United States National Security Review, and the Federal Trade Commission (FTC) all play a role in this process. Additionally, cultural challenges must be considered.