Case Study On The Mergers And Acquisitions Strategy Of COFCO

Frequently occurred food safety problems have arousedsevere doubt in recent years. Compared to other countries, China stillfalls behind in food industry. COFCO, the largest state-owned agro-product processingand food producing enterprise, has been dedicated to building a safe industrial chain from the field up to the table, with the aim of providing affluentand secure food for the public. As the pillar in the industry, COFCO focuses on the construction of the food industrial chain. It adopts mergerpartition and other methods to expand the upstream and downstream of the chain and strengthen the links in between. This paper centers on the methods in COFCO's industrial chain construction and analyzes them from the perspective of merger and acquisition strategy.This paper also tries to compare the different companies that had been absorbed and elaborate on the visions, specific actions and implement of its strategy aroused. In the food industry, the environment need forindustry consolidation in such an urgent, the need to find appropriate to their mode of development, research in accordance with the COFCO Group's acquisition strategy is able to achieve good results in the food industry.Kearney merger and acquisition strategy based on the theory of the evolution of industry and its corresponding in the growth stage of the food industry should implement the vertical merger and acquisition strategy of large-scale enterprises to accelerate the acquisition ofsmall businesses. Be described with the acquisition strategy of the leading enterprises in the food industry COFCO, the implementation of the food chain to build the whole industry chain development strategy based on thelongitudinal extension of the expansion of merger and acquisition strategy, in line with the currentfood industry needs. Merger and acquisition strategic planning in the COFCO merger and acquisition activity in recent years, on or downstream of the industrial chain of differentcorporate mergers and acquisitions, vertical to strengthen and build a differentfood chain, respectively. COFCO Group merger and acquisition acquisition strategy combinedwith COFCO and its merger and acquisition activity, respectively, in terms of financial indicatorsand non-financial indicators the effect of inspection, COFCO, to strengthen thevertical expansion of multiple food chain and complementary with the existingbusiness, to accelerate the COFCO full industry chain strategy cloth Bureau;for the acquired company, to get rid of the plight of enterprises to resumeproduction and operation; for society to ease the food industry in food safety the negative impact of the problem to ensure that the variety of our food safe and secure.