Research On The Performance Of Sinochem Group’s Transnational Merger And Acquisition Of Syngenta Technology Company

With the continuous development of Chinese economy,Chinese enterprises have greatly increased their own strength.Under the trend of reform and opening up,more and more Chinese enterprises have changed from the original demand for investment from foreign enterprises to open up more foreign markets.In line with this trend,overseas M & A has become the most effective way for Chinese enterprises to participate in international competition.Due to the financial crisis in 2008,the world economy has been seriously impacted,and a large number of excellent foreign enterprises are facing difficulties,which also creates opportunities for Chinese enterprises’ overseas M & A.With the support of one belt,one road,more and more domestic enterprises have joined the wave of overseas mergers and acquisitions.As a large-scale central enterprise built by SASAC,CHEMCHINA is bound to play a leading role in this wave.This paper selects Syngenta,a case of CHEMCHINA’s merger and acquisition,as the research object.From the market performance and financial performance of CHEMCHINA after the M & A,this paper analyzes the impact of the M&A on CHEMCHINA group.Analyze the causes of these effects,and provide help for the future overseas M&A of domestic enterprises.This paper uses the event analysis method to analyze theperformance,taking the announcement date of M & A as the boundary point,and taking the two periods before and after the boundary point as the event period of this event.The excess rate of return is calculated by subtracting the market daily rate of return from the actual daily rate of return.And use the excess return rate to study the volatility of M&A activities to analyze the short-term performance after M&A and finally come to the conclusion that the short-term performance has increased.Then by using Tobin Q theory,we find that the long-term performance of CHEMCHINA has been affected to a certain extent after M & A.At last,using the method of financial index analysis,this paper analyzes the impact of this event on the financial performance of CHEMCHINA,and finds that the merger and acquisition of CHEMCHINA has a negative impact on the financial performance of enterprises.Based on the research of Syngenta’s performance,this paper draws the following conclusions:first of all,the short-term market performance of the related businesses of the acquirer with the same business as the acquiree has been improved after the merger,while the short-term market performance of other businesses has been impacted to varying degrees.Secondly,companies with weak market in M&A industry will lead to the long-term performance degradation of M&A parties.When there is a huge amount of M&A activity,the management and operation ability of the acquired Party’s assets will seriously affect the financial performance of theacquired party.