Yutian General Products Of Gangdong Holdings Company

This paper consists of two parts: case introduction and case analysis.This case entirely indicates the merger between Yuntian General Products of Guangdong Holdings Company and Mingzhu Corporation. The introduction of case concentrates on strategic actions during merger taking place. The details of case focus on survey, decision-making, take-over and reform.Basing on the rule of merger and acquisition, the analysis starts with discussion about the characteristic, motivation and strategy of merger and acquisition that involves State-owned enterprise. The following part is about the important factors of merger operation. Guiding by the financial management theory, the analysis comprises the problem of survey, calculating the cost of merger, appraising the method and effect of reform and summarizing the success and failure of the merger operation. This paper finally offers some useful suggestions and finish with a two-step model for strategic merger and acquisition in order to develop the core competitiveness.