The Research On Merger Effects About Coal Enterprise

The government has promulgated a series of industry revitalization plans and policies in response to the financial crisis in2009. In this context, the local government has launched industrial integration in their respective areas for the purpose of GDP growth and the effective utilization of resources. The integration especially embodied in the coal industry, thus the large-scale coal enterprise mergers and acquisitions have started, such as the massive coal mine acquisitions in Shanxi and Inner Mongolia, a series of mergers in China coal energy company, the merger between Yanzhou coal company and Australia Felix company and so on. What kind of effect does the series of mergers and acquisitions for coal enterprise can bring caused the attention of theoretical and practical circles, and it needs to be researched and inspected in theory. The study analyzed the economic effects of the coal enterprise mergers based on the case study method with the sample of the merger between Yanzhou Coal Company and Australia Felix Company in2009, and draws the following conclusion:the market effects of the merger and acquisition are significant. The scale of the enterprise is outspread rapidly. The market of Australian is expanded and the market share is increased. The shareholders’ wealth is increased in the window period. But the enterprise effect is not significant. Junto beside the expansion of the coal resources reserves and the improvement of the capital structure and the cash flow, the operation efficiency, the costs, the income, the ability to service debt and the tax effect show a tendency of first increased and then drop. It indicates that the improvements was not persistent and may make the enterprise in a dilemma. The conclusion shows that the merger didn’t bring improvements for each aspect of enterprise persistently as expected, and it also reflects the short of the integration after the merger from another side. And then put forward two policy suggestions:(1) the government should focus on the coal enterprise development after the merger;(2) the enterprise shall be fully careful to investigate the merger and acquisition, and improve the efficiency of the integration after the merger and acquisition.