Research On Mergers And Acquisitions And Interest Transfer Of Listed Companies

With the rapid development of China's securities market,more and more listed companies reorganize and integrate resources by way of mergers and acquisitions(M&A)within the industry consolidation.They acquire other related companies in the industry or affiliated companies.However,in the process of acquisition,the effective stock supervision system and corporate governance have not built,the controlling shareholder derived a benefit from M&A,which damage the interests of other small shareholders through such a hidden way.In this paper,a typical case analysis method is used to analyze the M&A transactions between DD Group Co.,Ltd.and DLM Co.,Ltd.,.DD Group Co.,Ltd.DD Group Co.,Ltd.acquired DLM Co.,Ltd.at a very high premium,which up to 300 million yuan,but it does not disclose any information to the public.The controlling shareholder with its holding position advantage contributed to this transaction.The major shareholders' ignoring of other stakeholders' interst has a negative effect on the development of enterprise,as the company's performance fell sharply and investment losses exhausted so that minority shareholders suffered heavy losses.This case examines the information disclosure process and financial data's changes before and after the acquisition of D LM Garment Co.,Ltd.In the process of researching the acquisition of DDL Co.,Ltd.,the relevant concept was defined and the background and process of the case was introduced in the first part.According to analyzed the sharp decline of operating performance in the acquiring process,we infer that it acted transportation benefits.Based on the analysis results and conclusions,this paper provide lessons for those company who will make profit from M&A and give them suggestions about corporate governance and securities regulation.