A Study On Enterprise M&A Based On Core Competition

The Chinese Tobacco Industry, standardized and controlled by government through national monopoly, carries out with an exclusive sales system. China has become the first biggest tobacco country in the world since 1982. With the protection and support of legal laws and regulations, the domestic tobacco enterprises are maintaining the extremely high profit margin, and provide the large amount financial revenue every year for the country. The tobacco industry has developed into the pillar industry for the country financial revenue. Since the 1990s, along with world economics globalization step speeding up, the enterprises have raised fifth M&A tide. Facing the keen competition environment, the tobacco industry also started to step onto the large-scale expansion path day by day, through M&A, the scale of tobacco giants are becoming more and more big; the world tobacco market share has been concentrated in the minority several big tobacco companies; the tobacco market competition was more and more intense. Because the duration of self- accumulation is long, our national tobacco industry must strengthen competitive ability. In order to realize the change from big country to strong country in tobacco world, we must stand on the point of our core competition, and advance the process of M&A strategy positively and steadily.In the existing research literature, the concerned scholars have all done massive research work on the enterprise core competition, the M&A theory and the development strategy of our national tobacco economy, but lack the comprehensive utilization theoretical analysis. The M&A of tobacco enterprises in our country also has many problems. It is not the makeshift of expanding the scale and obtaining the plan target, but should base on the enterprise core competition, promote and strengthen it, to face the international competition actively.Firstly, this article introduces the related theory of the enterprise core competition and M&A separately, then combine them to propose that: if the enterprises want to carry on M&A activity, they must take the core competition as the starting point, and obtain the unceasing strengthening and the promotion along with the process of M&A. On the basis of theoretical analysis, through the study of survival environment, development condition of tobacco industry in China, propose the basic principle of M&A strategy; by integration, relax or even eliminate conflict arising from M&A, to realize the complete inosculate of target and initial enterprises, obtain synergy effect, create M&A worth and realize the M&A goal.