Risk Management and Opportunities of Cross-Border Mergers and Acquisitions in the Background of Deglobalization

Abstract

With the intensification of the US-China tariff war, the fragmentation of supply chains in various regions, and the industrial return of sovereign countries, the phenomenon of anti-globalization is becoming increasingly apparent. Based on the analysis of cross-border mergers and acquisitions cases under the background of anti-globalization, this article has found that against the anti-globalization trend, cross-border M&A faces heightened risks. Economically, market fragmentation and rising interest rates amplify financing costs and valuation volatility, while supply chain disruptions threaten synergy realization. Politically, expanded foreign investment reviews (e.g., the Committee on Foreign Investment in the United States, CFIUS) and protectionist industrial policies, where competition law merges with national security, significantly increase regulatory uncertainty and sovereign risk. Operationally, nationalist sentiments complicate post-merger integration. Conversely, new opportunities appear. Financial volatility creates chances for contrarian investments and acquiring divested non-core assets. The recombination of the supply chain drives M&A for nearshoring and technological autonomy. Political risks can be mitigated by focusing on deals within geopolitical alliances, transforming regulatory barriers into strategic certainty. Ultimately, deep localization and preservation of local brand value transform integration challenges into opportunities for long-term growth. Success hinges on sophisticated risk management and strategic agility.