A Case Study On The Cross-border Mergers And Acquisitions Of Coal&Allied By Yanzhou Coal Mining Company Limited

With the acceleration of the world economic integration and the optimization and redistribution of global resources,more and more Chinese enterprises begin to participate in the competition and cooperation in the international market.As one of the important ways for enterprises to quickly enter the international market and obtain overseas high-quality resources,cross-border mergers and acquisitions have been widely recognized and applied by enterprises all over the world.However,due to the lack of experience in cross-border mergers and acquisitions,Chinese enterprises are often unable to create expected synergies for enterprises.Therefore,this paper hopes to provide thinking and reference for other enterprises preparing to carry out cross-border m&a activities by comprehensively analyzing China's successful cross-border m&a cases.Taking Yanzhou coal mining co.,ltd.as an example,this paper adopts the research method of combining theory and case,first of all,it reads and sorts out the domestic and foreign literatures on cross-border merger and acquisition,and expounds and summarizes the concept and relevant theories of cross-border merger and acquisition.On this basis,the introduction of Yanzhou coal joint transnational merger and acquisition cases of coal,after introduce the related case background,in-depth study of Yanzhou coal the main joint of transnational m&a motivation and risk,and through the combination of qualitative quantitative analysis method from the market effect,financial performance and the impact on the enterprise management three aspects to examine the effects of the acquisition,the last case conclusion revelation and reference for other enterprises in the experience.Through research,this paper finds that the purpose of Yanzhou coal's transnational merger and acquisition combined with coal is to improve the operating financial situation,adjust the structure of assets and shareholders,increase the coal resource reserves,promote the overseas strategic layout and exert the resource synergistic effect.In the process of merger and acquisition,Yanzhou coal conducted comprehensive due diligence on united coal with the help of professional institutions at home and abroad,effectively controlling the decision-making and legal risks of merger and acquisition.With the help of the financing power of the parent company and the group company,the financing risks were successfully resolved.After the acquisition,the risk of integration failure is significantly reduced by clarifying the integration plan and strengthening the local management.The analysis resultsof the event study method show that Yanzhou coal's merger and acquisition of united coal has a significant short-term market reaction and brings a positive cumulative excess return rate to shareholders.Changes of the contrast before and after m&a financial performance can be found that m&a coal for Australian assets package the improvement in financial conditions,make the enterprise's profit ability,capital structure and quality of cash flow optimization,also released by tax synergy of deferred income tax assets value,to promote the sustainable growth ability of growing enterprises.In addition,the consolidation of coal to the enterprise management also has a certain influence,not only perfect the governance structure of the company,also in reducing corporate failure pressure available for exploitation of coal resources and improve the quality of coal blending of the enterprise and the product value,make the real entity to Australia became the group's overseas strategy of sustainable development platform.By summarizing the whole case of transnational merger and acquisition,this paper obtains the following experience enlightenment for other enterprises: first,reasonable selection of merger and acquisition target and timing is the premise of successful merger and acquisition.Second,in the process of merger and acquisition negotiation,we should be good at grasping the core demands of the counterparties.Third,the enterprise must form the formidable merger and acquisition transaction management ability to guarantee the merger and acquisition to complete smoothly.Fourth,we should invigorate the stock assets of enterprises with the idea of development,and promote the continuous progress and growth of enterprises.