Case Study On Chinese State-Owned Enterprises Acquisitions

Nowadays merger and acquisitions take place frequently in china, with state-owned enterprises reforming deeper, industrial and controlling structure consummating, capital market developing. China government will to control the number of state-owned enterprises less than one hundred in 2010. Then train about thirty enterprises becoming multinational group in next step. Furthermore, Logistics becomes the only one non-manufacturing in top ten promote plan published by china government. Therefore, the acquisitions of Sino-trans and Yangtze shipping make experiments in logistics M&A. it representative state-owned enterprises acquisitions in china, it's important to research the reason and process of M&A, the countermeasures of solving problem.This paper based on the Sino-trans case which background in state-owned enterprises merger and acquisition environment, applied theory and case study combining to research. Beginning with review on theories and literatures interrelated with state-owned enterprises merger and acquisitions, involved institutional school, M&A section model and Principal-agent Theory. Attached importance to Sino-trans'case, analyzed merger background and reasons, appraised the process of merger and the performance of integration, made the proposal of integration in the future, then summarized the problem in this case and the specials in different stages. Finally, made conclusions to this paper and tried to make suggestion to state-owned enterprises merger in china, proposed the directions of research in the future.The main conclusions of this paper including:Firstly, the M&A of state-owned enterprises may appear the agent target conflict. For instance, the manager of state-owned enterprises may contradict the mergers because that their profit would conflict with government's target, then the managers would set out the war of protection in the process of the merger. Secondly, the law and institution of state-owned enterprises mergers may need to consummate. As how to judge the kind of the company which public offering in Hong Kong or other outside borders stock market and how to judge the real controller of company. Finally, we should judge the performance of state-owned enterprises merger from the whole benefits of society. According to shipping industry mergers in china, it would influence the transportation of ore, the price of steel and the cost of electricity which close to state security of china. Therefore, we should not only consider the financial indicators but also think over the benefits of our society while analyzing the state-owned enterprises merger and acquisitions.