Inner Mongolia Group Co., Ltd. M & A Case Study

The mergences of enterprises have already been accepted widely in China as efficient means to collocate the resources of the productivities in recently years. It will be significantly important if the M&A scheme of state owned enterprises can be implemented successfully by merging and strengthening the competitive capacity, extending the state owned asset/capital.Many enterprises in Inner Mongolia Autonomous Region have not equipped abilities to adapt the competitive market economic circumstance with comparative small scale, singularity of products series. The way of M&A could be borrowed by many enterprises in Inner Mongolia to enlarge the predominance in existing field, reframe the weak industries by the mean of emerging with enterprises in other region and provinces, even forming coalition with economic bodies overseas after WTO accession to accelerate economic development in the region, meanwhile, government and enterprises should conduct a study of experience gained by these more than 20 stock-entered enterprises within the region , which enable government to provide necessary guide and services helping those not well-performed enterprises to upgrade their management and operation by internal mergence and acquisition to prevent the capital/assets of these enterprises from outflowing the region.The thesis is aiming to find out the rationale of M&A as well as identifying the shortcoming of the case conducted by Inner Mongolia MinZu Group Stock Co.,Ltd, in spite that there are no too many successful operations available to be borrowed witMn the region.