Study On The M&A Behavior Of Agricultural Leading Enterprises In China

With nearly 20 years of development, China's agricultural industrialization has made great progress, and the ever-increasing agricultural leading enterprises in the industrial structure adjustment of agriculture, farmers income, transfer of rural labor force have played a tremendous role. The Exploration of the "companies + farmers" and other models has given an good impetus to the protection of the interests of farmers and promotion of the development and expansion of agricultural enterprises in the process of the development of the agricultural industry. With the continued integration, development and strengthening, agricultural enterprises need more large-scale cooperation with the farmers; however, faced with the rising prices of agricultural products, increasing flow of the rural population and the change of the feelings between farmers and the land, the relation of the "companies + farmers" is facing a new choice.In this paper, through theoretical research, empirical research, comparative analysis and case analysis, summarized and synthesized the mergers and acquisitions theory. Moreover, in accordance with the guide of the theory, this paper put forward the basis of the development of the agricultural mergers and acquisitions was established on a certain degree of industrialization, and there were two phases of that development: the first phase was the regional industry chain structure, whose goal was to control the supply of raw materials and expand their market; the second stage was the cross-regional strategic merger and acquisition activity to the whole country and even the world-wide of the regional agricultural enterprises, whose aim was to complete the strategic layout of the business size.With comparing of the development status of agricultural enterprises at home and abroad and sorting out the existing problems in China's agricultural development, pointed out that during the process of the shift of rural labor, the main problems were the decreased quality of the left labor force who engaged in agricultural production and the difficulties in enhancing the rural labor productivity; meanwhile, set forth the problem of inadequate financial support during the development of China's agricultural enterprises.Through the analysis and review of the mergers and acquisitions of the agricultural enterprises at home and abroad, summarized how could make use of mergers and acquisitions means to rapid the development and expansion in the development of China's agricultural enterprises; simultaneously, found the negative effects of agricultural industry monopoly after the mergers and acquisitions of the agricultural enterprises and proposed some solutions such as the development of peasant organizations, the confrontation with the agricultural monopoly and the government restrictive policies on the agricultural monopoly. By inspecting the EVR indicators of COFCO Tunhe and Fenghuashenghua before and after their reorganization, proved that the application of the reasonable mergers and acquisitions could improve enterprise resource use efficiency and then enhance the enterprise's economic profit. By summing up the merger and acquisition activities of agricultural enterprises, figured out that the core issue of the development of agricultural enterprises' mergers and acquisitions was to resolve the relationship between companies and farmers and if wanted to establish the harmonious relationship between the companies and farmers, needed to link their interests target by property relations, and also designed the cooperative, specialized households enterprise management and other transition models.At present, the major obstacles of the property links between companies and farmers were the national rural land system and the problems of the transfer of rural laborers and social security for farmers. During the course of the discussion in this paper, the initial idea of land for social security was proposed, in order to promote the flow and concentration of rural land and ensure to meet the need of the scale of land management during the development of agricultural leading enterprises. There were mainly two ideas proposed in the land system design: one was to cooperate with companies through cooperatives which were established on the farmers' voluntary basis to obtain equal legal status with companies and ensure the concentration of land and the balance of farmers' interests; and the other way was to gradually put the trial implementation of "Farmland Stock System" into practice in the some regions with mature industrialization and a higher conversion rate of the rural labor force.To sum up, from the investment banking operations perspective, this paper designed the route for simulating the merger and acquisition of the rice industry in Liaoning Province and gave some solving schemes for the main procedures in the integration, in order to attract more research on the development strategy of small and medium-sized agricultural enterprises.Finally, this paper presents that the agricultural merger and acquisition activities were the inevitable economic phenomenon of the present stage of the industrial development of Chinese agriculture, and the academic circles should enhance the researches on increase the mergers and acquisitions of agricultural enterprises and provide theoretical support. The Government should also regulate the agricultural merger and acquisition activities in many aspects and provide political support and guarantee for reasonable health merger and acquisition activity, so as to tide over the current bottleneck period of the rapid development of Chinese agricultural enterprises, end its small, scattered and chaotic situation and form a number of Chinese large-scale agriculture industrialization groups.