A Case Study On Convertible Merger

M&A is one of general business practices in contemporary society. It has evolved into an important means and way in expanding scale, restructuring, improving operation and management and so on. Under the background of market economy, convertible merger is usually regard as an innovation means of merger. It can avoid the situation in which companies have to pay large amount of cash. Thanks to this condition, companies will not be restricted by the scale of enterprise funds and financing capacity. In the meanwhile, the combined companies can keep relevant shareholders’ equity and continue to enjoy value-added benefits in the future. In addition, convertible merger can produce tax avoidance and so on.CSR Corporation stock-exchange merge CNR Corporation is a milestone in the development of Chinese capital market. It’s a successful case of convertible merger in the entire circulation market. And it will have a remarkable demonstration effect and produce a valuable exploration on M&A of large enterprises in the future.The main contribution of this thesis is to study the event in conjunction with relevant research results in order to avoid falling into a simple theoretical analysis. In the case, it uses the existing methods to analyze motives, rationality of the way of payment and exchange ratio. In addition, it also provides some policy suggestions and measures to promote the development of large enterprises based on the evaluation of cases.This full contents are divided into the following three chapters:Chapter 1 introduces the basic situations of CSR and CNR as well as the specific process.Chapter 2 describes the motivation and rationality of the way of payment and exchange ratio.Chapter 3 summarizes the basic features of this case, and puts forward relevant strategies for the convertible merger of large enterprises in the future.