Weichai Torch Merger Integration

The M&A and R&I play more and more important roles during the development of enterprise. It can quickly expand industry, rationally configure, dispose and activate the property, adjust and optimize industrial structure, form and enhance international core competitive power. The WEICHAI Power and the TORCH Group are top 3 enterprises in Chinese automobile parts industry, the total income exceed 10 billion. The TORCH Group is good at operating capital and integrating industry. The WEICHAI Power is good at managing and operating competition units. The M&A and R&I of WEICHAI Power for TORCH Group is the biggest M&A and R&I case in the field of domestic heavy auto-mobile ,it also is the first case of trading stock for absorbing merger, H+A simultaneously going on the market and reforming experiment of domestic stockholder's rights. Researching this case teaches very strong lessons for Chinese enterprises which implements "great strategy'', has great practical significance to reform and develop Chinese Stock market.The paper explain the aim and principia, reason and strategy, merging and reconstructing mode and basic venture theory on the basis of discussing the theory of M&A and R&I, then summarize the Domestic and foreign researching status.Secondly, in this paper, the case of the WEICHAI Power merging and reconstructing TORCH Group was studied, on the basis of discussing the elementary theory of M&A and R&I. The background, origin, process, effect of this case and its existing questions were researched deeply in this paper. And this paper analysis the internal requirement of both sides of the merging case, the potential value of The TORCH Group which undervalue by the stock market for the reason of DLONG Group's finance crisis, the expecting value of TORCH Group after merged by the WEICHAI Power. The process of the WEICHAI Power merging and reconstructing TORCH Group incarnated some characteristics , such as the strategic and lengthways merging, the completely merging strategy, the reposeful and sufficient communicate. The result of this merging and reconstructing incarnated the cooperated domino effect, the manage efficiency, the ability of apace control market. This paper expatiate the case of the WEICHAI Power merging and reconstructing TORCH Group exist two big trouble, that were the obvious difference of theirs culture and the rein ability after merging and reconstructing.Circumfusing the WEICHAI Power's strategic purpose and its trouble of merging and reconstructing TORCH Group again, this paper researched the solving way and suggested some idiographic measure on five aspect: stratagem, operational management, culture, organizational structure and personnel, management and system, following the five principles of Business's globalization, system's standardization , communication's integration , serving's industrialization , Lean Production's cosmically.