What do you mean by international holding?

International holding means that an enterprise or organization expands its scale and influence by acquiring or controlling another international enterprise, thus entering the international market. This form of holding is usually through the purchase of most or all of the shares of another enterprise, which has important decision-making power and control power in the management. For an international holding company, its actual controller can be domestic or overseas investors, but its headquarters must be in China in order to accept the jurisdiction and supervision of the local government.

International holding is usually a way for enterprises to achieve growth and expansion by acquiring other enterprises. For the acquirer, controlling another enterprise can help it diversify its business and assets, increase its market share and achieve higher profitability. In addition, international holding can also help enterprises achieve greater economies of scale, such as complementary resource advantages in supply chain management, technological innovation, marketing and promotion, thus improving their competitiveness in the global market.

International holding will have an impact on both the acquired enterprises and the acquired enterprises. For the acquired enterprise, holding may change its management, merger and reorganization, business structure, culture and other aspects. For the acquirer enterprises, holding may bring greater competitive pressure, more investment and management risks, higher business ethics requirements, higher social responsibilities and other challenges. Therefore, international holding companies must fully consider the market environment, compliance requirements, cultural differences, policy risks and other factors, otherwise it may lead to transnational business conflicts, market shocks, social dissatisfaction, financial risks and other issues.