| Merger is an important means & modes of capital operation and is an effective approach to enterprises to realize their fast expansion. The merging party, merged party and parties concerned make their decisions to accept merger or not through reading and studying the schemes of merger which play a decisive role in a merger. The definition of the enterprise merger is discussed this paper in a narrow sense, which means when one enterprise emerges another one or several other ones, the former still retains the p legal personality whereas the latter will lose its or their legal personality. Furthermore, the former acquires the right to control the latter. Along with the progressive development of socialist market economy in china, rules of competition play an important role upon the development of thousands of enterprises always suffer losses, of which normal productive & operation activities can be hardly maintained. However, another part of enterprises are growing and developing gradually through competition, of which the expansionary motives become intensifying increasingly. As an effective approach for further development of profitable enterprises and meanwhile for the support to the survival of the enterprises that always suffer losses, enterprise merger has been given much support by the authorities concerned. Parties in merger actively participate in merger activities because they have seen the positive effects resulting from the merger. This article describes the meaning of the merger, the important role played by the merger schemes, introduces the historical background of the enterprise merger in China, explains the positive effects resulting from the merger and discusses the design scheme of the merger of a state-owned pharmaceutical enterprise done by a pharmaceutical company in Chengdu (hereinafter referred to as "the company").The company has a registered capital of RMB180 million yuan. It introduces in the word advanced pharmaceutical structure, develops and operates 4 major sorts of products as medicine, health food, cosmetic & detergent. The company sets the goal to become a pharmaceutical enterprise with an annual output valued RMB 10 billion yuan based on strong technical support, large-sized marketing network covering domestic retail market, operating structure of high efficiency & reasonable organizational structure. Through much effort, the company has purchased a production base having an area of 462 Mu of land in Chengdu economic development zone. Such base will be used for raw material extraction & product preparation. A pilot plant including re-packing units have been built, the certificates for production & sanitary certificates for the production & detergent are now available. The aforesaid newly built production base has been designed strictly following the relevant requirements set forth by WHO and GMP codes & standards. The annual output value will reach to RMB 10 billion yuan in normal years and the total value of profit plus tax will amount to RMB 1.65 billion yuan. This production base will have the largest production capacity as well largest the land area in Aria. In addition, the company has set up a transitional production base with 9 re-packing production lines installed for bottle packing, packing for health food packs and for aluminium-plastic packing, thus forming production capacity with an annual output value of RMB 2 billion yuan. The company has strong and effective marketing network which is the basis for market operation based on the marketing strategies of having diversified products and large area coverage ratio, having formed a relatively complete sales network nationwide. The company follows the tendency of day with an advanced sense of fast development, forming a superior enterprise based on high tech and extensive, intensive and specialized management at high starting point. Chengdu pharmaceutical cop., chengdu medicine procurement & supply center, Chengdu Chinese pharmaceutical corp. and Chinese traditional Medicine Procurement & supply... |
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