Research On The Motivation And Performance Of Zijin Mining’s Overseas Continuous Mergers And Acquisitions

Non-ferrous metals are the basic materials for economic,industrial and scientific and technological development,and their rarity and non-renewable nature also make them important strategic resources for various countries.However,the domestic mineral resources reserves are seriously insufficient,and the structure and grade of domestic mineral resources alone can no longer fully meet the needs of China’s large-scale and diversified economic development.In order to alleviate the contradiction between supply and demand,the state has introduced a series of policies for the non-ferrous metal industry,and the "Belt and Road" and other related policies have been proposed to encourage Chinese enterprises to "go out" and achieve the optimal allocation of resources in the world has become an important way for non-ferrous metal enterprises to enhance their comprehensive strength and complete leapfrog development.However,the journey of overseas mergers and acquisitions of Chinese mining enterprises has not been smooth.The reasons are often due to improper selection of targets,high M&A prices,weak risk awareness,and inadequate post-M&A integration.As one of the earliest mining enterprises in China to carry out overseas mergers and acquisitions,Zijin Mining has continuously carried out overseas mergers and acquisitions during the global mining downturn from 2018 to 2021.This paper analyzes and studies the motivation of overseas continuous M&A through the application of M&A related theories,and then analyzes and studies its short-term performance by reflecting short-term market reactions through event research method.Then,Tobin’s Q-value analysis method was used to analyze the long-term market response and the combination of principal component analysis and nonfinancial index analysis to analyze and study the long-term performance of enterprises after mergers and acquisitions.Through the study of the study,Zijin Mining has not only carried out overseas successive mergers and acquisitions around its two main businesses of gold and copper in the past three years,but also achieved the strategic goal of "entering the advanced ranks of international mining",met its M&A motivation of abundant gold and copper resource reserves,reduced the cost of enterprise expansion,controlled or monopolized resources,and increased the right to speak,and played a good synergy effect in management,operation and finance.However,there are also some problems in the M&A process,such as the high price of the target and the lack of timely communication on community issues.On this basis,this paper puts forward relevant suggestions for Zijin Mining in light of the specific situation,and also provides some enlightenment for Chinese mining enterprises to implement overseas mergers and acquisitions,hoping that under the international situation of the wave of anti-globalization,more mining enterprises in China can "go global".