Xinjiang Non-ferrous Group Merged And Performance Study

Under the economic globalization, enterprises must response to the pressures of competition coming from internal and external. To promote their Core Competence, and strengthen themselves in the competition, enterprises have taken M&A as a main and an effective way for development and expansion in the knowledge economy age. Stigaler, GJ has pointed out that no large companies in US didn’t grow up by a certain degree mergers, and almost no one relied mainly on internal expansion. M&A has the important strategic meaning to the development of the enterprises.This paper has three parts, they analyzed and annotated the basic process and the operating theoretical basis of M&A from simplest to more complex, and also from theory to practice. At the same time, they also analyzed the performance of merger cases. In the first part, the paper reviewed and summarized the sixty years development process of Xinjiang Nonferrous Metals Group, by seriously considered the changing patterns of business development, it found Xinjiang Nonferrous Metals Group should change the way from "newly built" to "internal accumulation and M&A expansion". In the second part, the main contents were the implementation of successful M&A cases of Xinjiang Nonferrous Metals Group, the paper from the strategic view described the 8 reasons for mergering to achieve external growth and 12 steps of M&A strategy decision-making. and analyzed the M&A motives from the strategic management and financial management point of view. Finally, and most important of all, the paper analyzed the successful M&A cases of Xinjiang Nonferrous Metals Group and also made a performance evaluation. The paper highlighted the financial indexes of M&A evaluation, and used the DuPont financial analysis, and compared the profitability, solvency, asset quality and development capacity indicators with the line standards before and after M&A. and pointed out the problems in the operations of M&A. and also gave out the countermeasures and suggestions in the future. The ancients said:the wise sometimes seek the time, and the fool move against the thousands of miles. To achieve "twelfth-five-year" development objective, namely to achieve the total assets of 200 billion yuan, sales income of 500 billion, profits of 100 billion yuan, Xinjiang Nonferrous Metals Group actively seize market opportunities, learn from the advanced experience, propose colored resource control and resource integration strategy, through the strategic reorganization of resources, low-cost acquisition, expansion, integration advantages of the formation of non-ferrous industry, around the three plates, to achieve dispersion of mining, mineral fragments, concentrated smelting, copper, nickel to achieve autonomous regions within the mining, elections, rule of integration, enhanced Enterprise anti-risk ability and market competitiveness. In combination with colored M&A Group’s successful cases, the paper analyze the strict financial evaluation indicators, and through detailed and thorough due diligence, and make the value of M&A more in line with the market economy and enterprise long-term strategic development, which is very important for the company to achieve successful M&A, and reduce the risk, and also standard M&A activities.