Research On The Choice Of Payments Method In Mergers And Acquisitions When Company DL Merging Company JX

It has been a long time since mergers and acquisitions(M&A)first started in western economies in 19thcentury.It has witnessed five changes in more than one hundred years.M&A is very effective in cooperation’s development.It can reallocated limited resources,lower the cost and reduce the numbers of competitors in the same industry.All of those contributions can lead a company to a brighter future.Compared with western economies,M&A didn’t arise until 1970s in China so it is not well developed because of the lack of the experiences.Before 2006,most of the enterprises use cash as the payment in M&A.But when the joint-stock system reform completed,stock payment became more and more popular.In 2015,M&A in China experienced significant development.China Securities Regulatory Commission(CSRC)held 113 meetings to check 339 transaction applications within a year,and it increased 70%compared with 2014.However,CSRC revised the stipulations of M&A in Sep 8th,2016,leading to stricter standards.Because of the revision,companies are facing a more complicated review procedure.So they have to review their transaction plans by themselves first to make it more reasonable.Different kinds of research methods are used in this paper,such as the quantitative analysis and case study,leading to an all-sided conclusion.Based on the previous theories in this field,the author chooses company DL as an object to conduct a case study in order to explore the motivations of M&A,the strength and weakness of various payments,and the influencing factors when choosing payments.Besides,effect of the rules is taken into account for the first time,leading to a more comprehensive study of this kind of transactions.By discussing company DL’s transaction,the author try to find how they changed their payments during the transaction and what makes them decide to change it.Through the analysis of company DL’s action,it can be concluded that there are some problems in Chinese M&A market.Corresponding suggestions are given make improvements.