Research On WH Group M&a Smithfield Synergy Effect

China is the biggest pork producer and consumer, the United States is the world’s second largest pork producer, is also the world’s largest exporter of pork.Shuanghui Fazhan is China’s biggest pork processing enterprise, WH Group is it’s controlling shareholder, Smithfield is America’s biggest pork farming enterprise.The m&a between WH Group and Smithfield can or not achieve synergies,became a big deal for the world pattern of meat.This article adopts the method of combining quantitative analysis and qualitative analysis to conduct research. In the aspect of quantitative analysis, using the method of financial indicators, this paper compares and analyzes by m&a happened 2013 years of data to compare the basis points, both before and after the WH Group mergers and acquisitions the longitudinal comparison and analysis of enterprise performance, also have WH Group and the transverse comparison and analysis of the enterprise, industry to compare under the same external environment than WH Group and the performance of the other enterprises in the same industry.After the analysis of individual indicators, using the comprehensive evaluation method will be more comprehensive financial indicators for comparative analysis,the conclusion. In the aspect of qualitative analysis, selected the continent international in the brand, technology and culture from three aspects of collaborative complementary analysis to display the intangible asset synergy effect.This article first reviews the background, motivation and process of m&a, and then analyzes the factors that affect merger synergies, including macroscopic factors,industry factors, enterprises and merger and acquisition itself factors, choose from financial synergy, management synergy, management synergy, intangible assets together four aspects analysis of merger synergies. Then select the financial index method financial synergy, management synergy, management synergy in quantitative analysis, first the analyzing and comparing all indexes separately, after the use of multiple indicators set up by using comprehensive evaluation method, from the point of view of longitudinal comparison before and after m&a WH Group business performance, found that WH Group financial performance after m&a as beforemerger, synergy effect is not obvious; International comparison from horizontal Angle than state and the rest of the industry’s enterprises operating performance,found that WH Group financial performance after m&a is better than the industry average level is higher and higher, shows that in the face of challenging situation of macro environment and industry, and have a whole industrial chain and can after the merger in the global range configuration WH Group competitive advantage of resources are becoming ever more obvious. Analyze the synergistic effect of intangible assets, using qualitative analysis method, from the viewpoints of brand,technology, culture analysis, found that m&a has already begun to achieve synergies,and with time and the extent of the m&a integration deepening, the synergistic effect will be further enlarged. Finally, made the conclusion of this article, this paper argues that WH Group mergers and acquisitions Smithfield basically achieved synergies, and think that "to choose the appropriate acquisition object, reasonable arrangement of m&a financing, adopt effective measures" system integration is the key to achieve synergies, at the same time as other cross-border m&a enterprises achieve synergies.