The Financial Risk Assessment And Control Of Zinjin Mining Group Company’s M&A

Compared with western developed M&A market of mining enterprises, M&A market of mining enterprises was later in China, and financial risks mining enterprises face has been one of the main risks in the process of M&A. Firstly, the paper expounds that the mining enterprises are in the foundational position in the national economy, according to analysis the status of mining enterprises’M&A at home and abroad, we conclude that mining enterprises’M&A is the inevitable trend of mining enterprises, and also analyze the types of financial risks of mining enterprises’M&A, driving factors and their formation mechanism. Then, the paper chooses the example that Zijin Mining Group Company mergers Norton Gold Fields Limited as the research object, in the consideration of the characteristics of Zijin Mining Group Company, the paper builds a set of evaluation index system of financial risks happened in M&A, and according to financial risks evaluation methods, the paper decides to choose index analysis method to analyze all kinds of financial risks Zinjin Mining Group Company faces, the paper chooses the industry average and its historical value as evaluation standard. Then, the paper analyzes a series of prevention and control measures taken by Zijin Mining Group Company in view of the financial risks in M&A, and points out its existing deficiencies. Finally, aiming at the shortcomings of the Zijin Mining Group Company risks prevention and control, this paper puts forward some improving measures.The study aims to apply theoretical knowledge to practice, and to solve the actual problems mining enterprises facing on real significance, and to help mining enterprises to prevent and control financial risks in the process of M&A. This paper mainly adopts literature research method and combines theoretical research with case research method to study the financial risks of Zijin Mining Group Company. By analyzing Zijin Mining Group Company’s financial risks of M&A, this paper argues that target enterprise’s pricing risk, financing risk, cash payment risk that Zijin Mining Group Company faces in the process of M&A is lower, the later financial risk of integration is relatively higher, and the paper concludes that information asymmetry, single financing mode, exchange rate risk respectively lead to the target enterprise’s pricing risk, financing risk, cash payment risk. Finally, based on the risk factors, some improvement measures are put forward, Zijin Mining Group Company should actively reduce information asymmetry in the process of M&A, implement financing mode diversification, strengthen the exchange rate risk awareness, and strengthen the integrated management in the late.