The Evaluation Of Merger Synergies Of China Unicom And CNC

While the State Council announced the reorganization of telecommunication enterprises in May, 2008, China Unicom and CNC (China Network Communications Corporation) began their cooperation at the same time. Reorganization of telecommunication enterprises, which is benefit for China Unicom to enhance business competitiveness, causes wonderful development opportunities.Synergies are not only one of the motives for corporation M&A, but also the key to evaluate and determine the success or failure of M&A. So the study of merger synergies performs an important role in market guidance and practical value for Telecommunication Carrier. Meanwhile, it has far-reaching impacts on integrating resources domestically and strengthening our Telecommunication Carrier's competitiveness in the global market.With regard to M&A of China Unicom and CNC, what synergies of M&A will be happened in re-organized China Unicom? What are the key factors and how to avoid the negative synergies? This research analyzes the effects to China Unicom from operation, market, technology and other aspects. It also raises some proposal for enterprise operation based on the international experiences. In addition, this research evaluates shareholder's income participation with model L-G.This research is trying to assist reorganized China Unicom to well grasp the opportunity, book the doable strategy objective and enhance the competitiveness, which can guide the different functions of enterprise to cooperate and develop fully, healthily and continuously.The main contribution of this paper is to analyze the merger synergies that bring to the new China Unicom, such as in the all-services operations, WCDMA technical advantages. 3G value-added services, FTTx network.Also made a personal recommendation to avoid the negative synergistic effect of measures in cultural integration, brand integration. Wish this research could help China Unicom improve the mobile service and fixed-line business operations, maximizing the benefits of telecommunications restructuring, avoid the negative synergies, create company's new brilliance.