JXM&TS Company Case Analysis

The corporate industrial structure will raise many problems, after operating for a time.If companies rectify not in time, it will be face with bankrupt risk. However, whencompanies do not have ability to adjust their industrial structure, they can save themselvesthrough corporate mergers and acquisitions. Under the new situation of world economicintegration, our country follows the pace of trend in world economic development. Throughrepeated argument and research, China resolutely joined in WTO that means opportunityand challenge. Comparing with developed countries, the development of our companies isrelatively slow. Many companies in China choose mergers and acquisitions to optimizebusiness economic. However, companies maybe not have deep realization on a series ofrequirements of mergers and acquisitions. Therefore, there is no doubt that the developmentof corporate merger and acquisition has an important practical significance.Companies aim at profit. The profit maximization is the motivation of corporatedevelopment and the wind indicator that leads to all corporate operation activities. Whencompanies are face with severe marketing economic competition, it is the most urgentrequirement that increase their competitiveness for companies. It is more ideal ways thatoptimize economic structure and do corporate mergers and acquisitions. Therefore, it isurgent affairs that research on the theories and practice about corporate mergers andacquisitions. This essay will aim at the development, process and measure realization ofcorporate mergers and acquisitions doing discussion and comparatively analyse the theoriesand practice about corporate mergers and acquisitions. It will proceed from the case that JXmerges with TS to explore the universality of corporate mergers and acquisitions. At last, itwill analyse various risks that need to be grasped in the process that merges miningcompany.There are five chapters in this easy. The first chapter is Prolegomena. It introduces theresearch status, aims and significance of merger and acquisition in the domestic and foreignand the research strategy and methods, moreover, exposits theories. The second chapter isthe introduction of Merger and Acquisition Theory that describes the research situation ofcorrelation theory in the domestic and foreign at present. The third chapter is the situationsof the two sides of merger and acquisition and existing problem analysis. It mainly introduces the situations that are the two sides of merger and acquisition, mine that ismerged and its major produces and analyzes existing problems of both sides. The fourthchapter is the case study that JX Company merges with TS Company. It describes thesubject of whole case, the plan of merger and acquisition, Due Diligence Investigation andthe situation of business valuation. At last, the fifth chapter is conclusion and expectation.Through the case study, this essay draws the main conclusion that the resource project haslong period value; when state owned corporations merge mining corporations, they need dosufficient Due Diligence Investigation; at the same time, they also need satisfy the requiresfrom state regulators.