The Research On Synergistic Effect Of Ganfeng Company Limited’s Mergers And Acquisitions

In recent years,with the continuous implementation of the new energy policies,the lithium battery industry has been greatly improved,and the increasing need for lithium battery’s raw materials has brought better development opportunities to the whole lithium industry.Due to the increasing technical threshold and funding requirements,the integrated trend between various lithium products tends to become stronger and stronger on national policies.For self-preservation,a number of small and medium-sized enterprises struggling for survival begin to seek buyers,while the large enterprises at the top of the industry offer an olive branch for rapid expansion.In the surging wave of mergers and acquisitions,despite the fact that many companies failed due to the blind merger,there are lots of successful cases,Ganfeng Lithium Co.,ltd.is one of them.According to the research of Ganfeng’s strategic merger activities since 2010,we offer an insight into the synergistic effect of mergers and acquisitions to absorb its experience and lessons,and provide better guidance to other peer enterprises.After reading a larger number of relevant theories on the strategic mergers and acquisitions,we study a series of Ganfeng’s strategic merger activities since 2010 by the case analysis method.Taking into account its own motivation and combining industry background,we use the event study approach and financial indicators to analyze the synergy effect of Ganfeng’s strategic mergers and acquisitions from two aspects,one is for short term and the other one is for long term.We focus on economic synergy,management synergy and financial synergy to assess the long-term synergy of Ganfeng’s mergers and acquisitions performance,find out the key success factors and the problems,and put forward the corresponding and development suggestions combining the development trend of lithium industry.In the face of the rapid development of lithium industry,Ganfeng has put forward the grand strategy,establishing the upstream and downstream integrated enterprises,and carried out a series of strategic mergers and acquisitions.It insists on its strategy,grasps the corecompetence,adopt flexible models for mergers and acquisitions and pay more attention to merger integration.Up to now,Ganfeng has made great achievements,also set a good example for other peer enterprises.