The Case Analysis Of JMC Acquisitions Taiyuan Changan Heavy Truck

Mergers and acquisitions is the automobile manufacturers enterprises bigger and stronger strategy important form.After the 1990 s,along with our country to strengthen support of the auto industry,many domestic large state-owned and private car makers have gradually grow through acquisitions.Especially since the early 21 st century,the domestic auto industry wave of mergers and acquisitions appeared again,m&a has become a domestic car-makers quickly preempted market,preferred way to enhance comprehensive competitiveness.With the development of market economy in our country,and the end of the five-year transition period of China’s accession to WTO,the domestic each big car makers to diversification and internationalization has become an inevitable trend,compared with the international big car manufacturers,although in recent years our country automobile industry development speed quickly,but all aspects of the development is still at the lower level,such as the management idea,technology and innovation of products and services,as a result,the integration of domestic automobile industry will bring to our country automobile industry an unprecedented opportunity.And accelerate the pace of consolidation and the implementation of positive merger and acquisition strategy is both the growth of major auto manufacturers in China,is also an inevitable choice for change situation of automobile industry in China.Relevant scholars,however,for the auto industry’s m&a case for empirical research,the results showed that part of the enterprise m&a behavior whether short-term or long-term are not are the wealth effect of shareholders.Academia for mergers and acquisitions,therefore,whether bring positive influence to our country automobile industry performance still,however,and explore automobile industry mergers and acquisitions,and correct evaluation of enterprise m&a impact on performance for auto makers in China’s strategy of "bigger and stronger" provides some principles,basis,strategies,for the guidance of the implementation of China’s auto makers m&a behavior is of great practical significance.This article adopts the method of normative research combined with case study research.In normative research section,paper summarizes and reviews at home and abroad a large number of literature,from the theoretical level using the theory of efficiency,market power theory,agency theory and the theory value underestimate of m&a motivation,characteristics,the influence of the effect of the mergers and acquisitions and analyzes the wealth effect of shareholders.In case analysis part,Taiyuan Changan heavy truck JMC automobile m&a cases as the research object,in the case of m&a motivation,process and characteristics,on the basis of factors such as changes of operating performance and shareholder wealth,and then analyze the reasons for the success of mergers and acquisitions,finally,summarize the research results and enlightenment from the case.In this paper,the research focuses on firms’ m&a motives and its impact on its effect.Combining the theory of mergers and acquisitions at home and abroad and assessment system,from the perspectives of its strategy,the future development of m&a behavior impact on corporate performance and shareholder wealth,and then explore the reasons for the success of mergers and acquisitions,and based on the above conclusions and put forward the JMC automobile the acquisition for other enterprises to learn from the experience and enlightenment.Full text includes five parts,the first part the introduction clarified in this paper,the research background,significance,and through the review of auto industry mergers and acquisitions,m&a performance and m&a motivation and shareholder wealth effect after the integration of the four aspects of literature,built in this paper,the research ideas and methods.M&A theory are summarized,the second part of the introduction of the concept of mergers and acquisitions,the characteristics of horizontal mergers and acquisitions,factors influencing the key to the success of mergers and acquisitions,etc.On the basis of summarizing the M&A theory,summarizes the m&a motivation.The third part is Taiyuan changan heavy truck JMC auto-mobile m&a cases is introduced.Main content including mergers and acquisitions both sides of the background information,the process of mergers and acquisitions,and summarizes the features of m&a.The fourth and the fifth part is the core content of the full text,in the form of case study and normative study in detail the merger of JMC automobile drivers,including: to improve business performance,increase market share,expand the product line and the realization of the combination of industry,increase the wealth of shareholders,etc.Finally summed up the enlightenment to other enterprise m&a behavior in this case,let the other enterprises can get effective conclusion from this case.Then build a financial model,using the intuitive chart shows the change trend of performance before and after m&a,and USES the excess yield index,specific quantitative degree of shareholder wealth appreciation after the merger,and then explore the reasons for the success of the acquisition.The last part of the above theory and case analysis in this paper,we study the conclusion and the enlightenment to the auto industry mergers and acquisitions.