Analysis On The Series M&A Effects Of China Resources San-jiu

In recent years, merger and acquisition has become the best choice to realize leaping development. As rapid development of merger and acquisition in global market, Chinese enterprise became part of this trend and the pharmaceutical industry is no exception. As a sunrise industry, pharmaceutical industry gets its own characteristics:large initial investment; high development costs; high research risks and the demand for capital are endless. During this situation, it is very hard for a pharmaceutical enterprise to grow up only rely on its own. So merger and acquisition became the inevitable choice.This article mainly from the theory of effects of mergers and acquisitions, and based on a series of merger and acquisition factors such as the main body of merger and acquisition, the procedures, the enterprise development strategies and principle risks to analyze the motivation of merger and acquisition. And then combine the motivation and business performance to analyze the effects of merger and acquisition. According to the analysis of the comprehensive evaluation results, judge the success of series of merger and acquisition of China Resources Sanjiu Medical & Pharmaceutical Co, Ltd.Through the analyze of the series merger and acquisition activities of China Resources Sanjiu Medical & Pharmaceutical Co, Ltd, we can come to a conclusion that, the production line has been enriched by gain two branches Shun Feng and Tian He; The brand awareness and corporate value has been further strengthened by merger the OTC enterprises; gain a rapid growth in the field of traditional Chinese medicine prescription by merger the Chinese medicine enterprises. During the series merger and acquisition activities, the scale of China Resources Sanjiu Medical & Pharmaceutical Co, Ltd has been expanded and in the face of rising of raw material prices, the company’s gross margin has decreased, but the decline was smaller and that is the effect of operating synergies. From the overall, the results of merger and acquisition are consistent of the original intention. And from the point of long-term development, the series merger and acquisition activities are beneficial.