A Study On The Economic Consequences Of China Resources Breweries Merger Kingway

Mergers and acquisitions (M&A) are important means for modern enterprises to expand scale, improve strength and achieve optimal allocation of resources. With the advancement of globalization and the development of market economy in our country, there are more and more M&A cases of various types. Beer product is difficult to keep for a long time and not easy to transport. Due to these characteristics of beer product, enterprises have to find an effective way to maximize the benefits under the limitation in transportation distance and product timeliness. The author found in the learning process, however, not all cases of mergers and acquisitions are successful, some mergers and acquisitions has hindered the development of enterprises. For beer industry enterprise managers, the first thing to do is to accurately evaluate the economic consequences of M&A events that have occurred, in order to better use and improve their mergers and acquisitions means. Therefore, the research of the existing beer M&A case economic consequences has a very importantly practical and theoretical significance.This article used the event that 2013 CR Snow mergers Kingway Bear as the analytic target, collected relevant data from 2012 to 2015, and analyzed the economic results. This article is organized as seven sections as follows:Section 1 is Introduction, which includes the background meaning, frame of the research, the definition of economic results, research technique and innovation points.Section 2 is Literature Review, which firstly summarized literatures about economic results of M&A, then summarized literatures about M&A in bear industry and finally gave a commentary and pointed out the research contents of this article.Section 3 narrated the basic situation of the whole M&A event, including the basic information of two enterprises, the background, the information and motivation of the event.Section 4 and 5 are the parts of economic results analysis. The main analysis fields are sales market, capital market and financial performance. The technics adopted in this article are:combination of quantitative analysis and qualitative analysis, case analysis method, comparison analysis, event-study method and Delphi method. Then the conclusion was given.Section 6 contained the conclusion and the enlightenment of the research as well as some insufficient of this article.This study concludes that both from the perspective of sales market and capital market point of view, M&A has created considerable value for CR Snow. But due to CR Snow’s low product profit and the short time after M&A event, CR Snow has not concordance its resource well, which leaded to the mediocre financial performance. In the future development, CR Snow need to needs do more to fully integrate the acquisition of assets, reform, the construction of its product line and improve its financial performance. This case study results have significant degree of reference sense for the rest of the beer industry enterprises and other enterprises with high marketization. In this study, due to the difficulty in the collection of part of the data, the author did not give appraise for further productivity and efficiency after the merger of the enterprise. In future studies, the author should be more focused on mergers and acquisitions event study of the category hierarchy.