Research On Merger And Acquisition Of Slaughter And Meat Processing Enterprises In China

This paper researches mergers and acquisitions cases of China’s slaughtering and meat processing industry in recent years, and explores feasible M&A mechanism of China’s meat industry. Firstly, it introduces the history of M&A of the domestic and overseas meat industry, China’s meat industry background and the future trend of the industry’s M&A. Subsequently, on the basis of M&A theory and the actual merging cases of China’s leading meat companies, the Pros and Cons of three typical M&A modes are analyzed represented by companies as Yurun, Shuanghui and Cofco(China Oil&Foodstuffs Corporation), and ultimately the feasible M&A mode for China’s meat industry is explored.This study shows that,(1) large-scale of hog raising, industrial and deep processing, capitalization(securitization) is future development direction of China’s slaughtering and meat processing industry. Companies should combine own resources to develop acquisition strategies;(2) to succeed in M&A, the company should become a leading one with mass production of major products, try to enrich product lines and finally integrate the whole product chain;(3) vigilant risk control is the key for a successful M&A.(4) any changes of polices and regulations should be followed and limitations of policy and environment be closely watched.