Research On The Effects And Operating Mechanism Of Mergers And Acquisitions Of State-owned Enterprise

In the global Merging Wave, China's state-owned enterprises have begun some mergers and acquisitions since 1980 s. In the mid-1990 s,the strategic adjustment of state-owned economy promote the activity of state-owned enterprises' mergers and acquisitions. Fifteenth General Assembly on behalf of the Chinese Communist Party raise that adjust the layout of the state economy strategically in 1997, and continue to take the adjustment of the industrial structure of state enterprises as an important task to layout in the sixteenth General Assembly.also, promote the mergers and acquisitions of state-owned enterprises is raised from a strategic height in the seventeenth General Assembly. The State Council issue the <industrial transformation and upgrading plan(2011-2015)> in December 2011, it is clearly put forward points developing a large number of large enterprise groups through mergers and acquisitions.In order to promote adjustment of the state economy and industry structure, the enterprises own to State-owned Assets Supervision and Administration Commission of the State Council form large-scale effects through mergers and acquisitions, the number are reduced to 80-100,of which 30-50 must create their own intellectual property and a large group of well-known brands.Enterprise Groups are economic organization which can integrate resources and is of scale effect, present in both developed and developing countries. Compared to individual companies, they are more internationally competitive and risk resilience,and play a crucial role in the efficient use of assets and optimize resource allocation etc. In order to adapt to the complex international environment and an increasingly competitive market, the state-owned enterprises related to the country's economic lifeline have set up enterprise groups through mergers and acquisitions and other means to achieve common development and diversification. However, according to McKinsey & Company survey, the success rate of the mergers are not high in the west countries, the companies of good development after mergers and acquisitions are only 20-30%. One important reason for its failure is the lack of effective integration mechanisms. In this paper, the performance of state-owned enterprise group under different acquisition modes do a comparative analysis of the system and operating mechanism constructed after the merger of state-owned enterprise groups, with a view to benefit the healthy development of state-owned enterprise groups. This paper is divided into six chapters:The first chapter: Introduction. The empirical experience abroad shows that the value created from the integration of acquisitions work late, the work after the merger integration play a key role on the success of mergers and acquisitions. Therefore, the state-ownedenterprise group-specific economic, political, social and other property are taken into account in this paper. The merger mode of state-owned enterprise group is studied and and raise the system point of how to integrate, building a state-owned conglomerate operating mechanism after the merger integration to provide a theoretical basis referring to the healthy development of enterprise groups.The second chapter: state-owned conglomerate merger theoretical basis. The cost theory,agency theory, economies of scale and government actions is combined. Considering the characteristics of China's state-owned enterprise group, The acquisition mode and border operation mechanism is studied and the enterprise boundary theory and state-owned enterprise reform theory are enriched and improved, which provides a theoretical basis and patterns for the reform of state-owned enterprises and property management.The third chapter: the empirical analysis of the effect of state-owned conglomerate merger. In order to study the effect of different acquisition modes post merger integration analysis, state-owned conglomerate parent sample or sample data are selected to explore the state-owned conglomerate merger happened from 1 January 2011 to December 2011 Day31.Explore what is the nature of the business tend to acquisitions, post merger integration effect, and how the nature of corporate mergers and acquisitions influence the kind of features and effects.The fourth chapter: The study on acquisition of Minmetals Group.Minmetals Group become an internationally renowned major mining companies through effective and successful mergers and acquisitions. Its successful experience, especially the experience of enterprise integration in the post-merger provide a useful inspiration for other merger integration of state owned enterprise group.The fifth chapter: The establishment of the operation mechanism of state-owned enterprise group after merger. The enterprise or enterprise group after merger integration will need different operation system, including a combination of cultural assets and resources,formation of resource sharing, complementary advantages of the operation of the system. The success of mergers and acquisitions is not equal to the end success of mergers and acquisitions, the acquisitions integration success is the real success. In order to realize the integration ofenterprise success, a sound operational mechanism is needed to ensure the smoothoperation of the post merger integration. Due to the integration of internal resources andcontent of more complex, sometimes they are not balanced and even have contradictions. Thus, the establishment of operation mechanism for the ability to integrateresources is difficult. Therefore, the governance mechanism of state-owned enterprise after the merge is established from the cultural incentive and constraint mechanism, coordination mechanism, mechanism of financial.The sixth chapter, the research limitations and outlook. A brief summary of this study is made, and puts forward the prospect of further research.