| After the 2008 financial crisis,the international shipping industry is huge impacted,the development of the world economy has been in adjustment in recent years,but it still faces challenges such as low demand,financial market shock,international trade volume reduction,low growth and inadequate investment.Recently,US President Donald Trump signed an executive order to formally declare the U.S.out of the trans-pacific partnership(TPP)to honour its campaign promises.The world's largest economy entity,the United States,is being tough in its trade.Trump is likely to improve border taxes,pillaging other countries' interests to safeguard the United States' interests.The benefit sharing mode of economic globalization is likely to be broken,and multilateral trade may be replaced by mechanism of bilateral trade.Trade protectionism in the United States is gradually strengthened.Anti-globalization trends are bound to affect the change in global trade volumes,especially in the shipping industry,which is directly related to global trade.In recent years,the global shipping market has been in an overall downturn,with the dry bulk market being the worst.Even in 2016,it hit its lowest level since the financial crisis hit in 2009.In view of the Chinese economy,China's economy growth has slowed gradually since the international financial crisis.GDP growth has fallen from more than a dozen per cent a year to less than 7 per cent in 2015.The shortage of demand is a symptom of China's economic problems,while the shortage of demand reflects the disconnection between supply structure and the market from another side.In this continued downturn,approved by the state council,on December 11,2015,China Ocean Shipping(group)corporation and China Shipping Group merged.The merge of COSCO and China Shipping Group is a major action of the reform of state-owned enterprises.How will the two groups carry out the integration of their resources,whether the situation of current losses will turn into profit,and whether group merged will create synergies? Whether cosco shipping group would occupy the leading position in the world shipping market? The reasons,plans and consequences of their merge are all worth investigating.This paper firstly reviews the merger theory,merger agent theory and synergies theory.Then it introduces the situation and background of the case,including business category of cosco group and China shipping group,the merger scheme between the two groups and the reason of the two groups' merge is simply analyzed.Then,this paper analyzes the potential synergies between cosco group and China shipping group,which is divided into four aspects.Firstly,this article analyzes the reaction of the market to the merge news and the attitude of the investors through calculating the excess earnings of the share price.Then,this paper analyzes the existence of potential synergies respectively from the management synergy,financial synergy and synergy management three aspects.After a series of related work,this paper concludes that the future potential synergies between the two groups,including potential business synergies and management obviously exsit,and the financial synergy effect is little.In the end,the paper makes a bold prediction about the future direction of China ocean shipping group,and puts forward some suggestions on the problems in the development of state-owned enterprises. |
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