The Analysis On Performance Of Sinopec’s Overseas Mergers And Acquisitions With Addax

Since China joined the World Trade Organization, the economy has maintained rapid growth. China’s manufacturing industry as a pillar industry has consumeda large number of energy for exports.Automobile and other energy consumables are quietly into tens of thousands of households.Although the natural resources are abundant in our country, the growing demand for energy continues to deepen China’s dependence on energy imports.Therefore,there appears a progressive tendency in China’s imports of energy year by year,and the most distinct imported energy is the growth of crude oil.In 2014 crude oil imports hit a new record in recent years, reaching 3.1 million tons.It increasedby 9.5% compared to last year.Based on the 3.1 million tons of imports,it could be speculated that China’s, ratio of foreign dependency on crude oil has reached 59.6%,which increase 2.6% compared to 57% in 2013.. In 2004,in terms of the number of overseas M &A the top three are real estate, machinery manufacturing and energy, three traditional industries.With respect to the amount of money,energy companies ranked first.The big three among energy corporations, PetroChina, Sinopec, CNOOC, led a wave of overseas mergers and acquisitions. The case of Sinopec merger of Swiss Addax selected in the paper is a successful one,and itdraws the global attention this year. The case is considered a classic case of overseas mergers and acquisitions forstudying. Then, the M & A behavior to Sinopec brings what economic benefits, is one of the signs to measure the success of mergers and acquisitions to enhance performance of M & A activity. Therefore, the author chooses performance analysis thorough analysis to the case.This paper discusses related theories firstly, to explore the relevant theoretical and empirical performance of current academic system, and it found that scholars did not reach the same conclusion whether M &A performance improves M & A. this paper,with Sinopec merger and acquisition of Addax as an example, studies the impacts of mergers and acquisitions implementation performance of mergers and acquisitions of Sinopec. The market performance and financial performance of M & A activity is the focus of this paper,where,market performance uses the event study method- the analysis of the market,and the financial performance of the accounting research method. Accounting research method includes four aspects of profitability, growth ability, debt paying ability and operation ability.it does not only have a longitudinalanalysis,but alsoa comparative analysis of the same industry enterprises found that profitability in the acquisition of the year a significant increase in mergers and acquisitions, after a few years of profitability became beyond potential oil peers; after the merger the growth ability is better prior to the merger; Sinopec’s operating capacity prior to the acquisition is always higher than the same in the oil industry, after the merger it did not decline; effect of long-term solvency, but the short-term debt you ability have been improved after the merger.