Research On The Strategy And Value Effects Of The Convertible Absorption Merger To Realize The Recombination

Convertible merger, namely to stock the means of payment as M&A.ording to the change in different ways, can be divided into capital,stockrepurchase convertible convertible, the parent company and the subsidiarycompany cross exchange etc. More common is the merger and acquisition ofenterprises through the issuance of new shares from the originalshareholders of the company to repurchase shares of mergers andacquisitions, convertible merger. Convertible merger than cash mergers andacquisitions to save transaction cost, but also reasonable taxavoidance and expected stock growth effect in the financial.Since the90s of the20th century, international financial environmentbecomes more relaxed, especially the development of financial service tradeliberalization, global popularity to a Convertible M&A transactions.In2006September, China under the full circulation of the firstconvertible merger--Shanghai port Group merged its listing Corporation onShanghai port container was approved. After solving the problem of equity segmentation, always preventedthe convertible merger to determine the proportion problems have beensolved. Convertible merger will quickly become a major mergers andacquisitions of securities market.Taking Shanghai pharmaceutical and convertible absorption and twolisting Corporation real Chinese medicine and Western medicine as anexample, with a combined method of theory and case analysis and researchof the obtained conclusion, this reorganization conforms to the industrialpolicy of Shanghai city hall, had positive effect on the increase ofconcentration of Chinese medicine through the drug industry.At the same time, that the merger of China’s convertible in theaccounting treatment of convertible merger, the disclosure of financialinformation, and how to improve the performance are worth thinking placein the analysis research.