In recent years, the development of the Chinese automotive industry has been in full swing under the background of “One Belt One Road” initiative. Domestic industrial technology and overseas mergers and acquisitions simultaneously continue to their prosperous growth. Geely’s acquisition of Proton, Southeast Asian automobile manufacturer, attracted widespread attention from the public, as this acquisition was another major overseas acquisition of the company following the acquisition of Volvo. Under the background of the Belt and Road initiative, this article analyzes the general situation of the domestic and foreign automotive industry and Geely’s motivation behind the acquisition within the concept of economies of scale, collaboration and trade barriers. At the same time the study uses SWOT analysis and stakeholder analysis in order to find out the benefits of two parties of merger and acquisition. Secondly, the Event Study Method was used to analyze the performance of merger and acquisition, and the conclusion was drawn that this merger had a positive impact on the performance of Geely in the short term. The above analysis becomes helpful to come with constructive comments and suggestion for China’s automobile industry, which follows “go global” strategy under the background of One Belt and One Road Initiative.