The Case Study Of Midea Group Merged Little Swan By Stock Exchange

Mergers and acquisitions(M&A)of enterprises are common businesses in the primary and secondary markets.As the national economy prospers and increases rapidly,enterprises often tend to initiate more M&A plans to expand their business and company.Enterprises accept various means of payment for consideration during M&A and are paying extra attention to the M&A approaches.Stock exchange M&A have been commonly favored by many enterprises,public and private ones alike.This approach requires no necessity for funds in its payment and guarantees a bigger scale of the M&A.Media Group Co.Ltd.launched stock exchange M&A to merge with Wuxi Little Swan Co.Ltd.,effectively optimizing the resource integration,allocation,and collaboration of the whole group.This paper starts with the analysis of the exchange stock prices,stock exchange ratio,cash options for dissenting shareholders,and other factors in enterprise cases.With the M&A between Midea Group and Little Swan as an example,this paper attempts to verify two questions: firstly,if the interests and rights of all parties are well protected in this merger initiated by the Chinese home appliance giant,Midea Group,including the combining party with its majority shareholders and the combined party with its minority shareholders;secondly,if the difference of stock exchange ratio between A-share and B-share of Little Swan is reasonable.This paper intends to provide a reference for enterprises in their stock exchange activities in the markets,advising them to propose a more reasonable stock exchange ratio during the merger.The paper is established upon thorough research on subjects as pricing and cash option in stock exchange mergers between Chinese enterprises.The structure of the paper is as follows: to start with,it discussed the backgrounds of the parties and the significance in the mergers and acquisitions for them,respectively.The reason for choosing the case of Media Group and Little Swan is also explained;secondly,the paper summarizes relevant theories,literature,and researches on stock exchange merger;then,after displaying the overall process of the mergers and acquisitions and the introduction of the merging parties,the motivation for Midea Group to merge with Little Swan is explained.This part also analyzes and summarizes the business operation,stock exchange prices,cash options for dissenting shareholders from the perspectives of the two parties respectively;lastly,the paper is concluded with the limitations and prospects of the study,appealing for enhanced legislation to protect the interests and rights of minority shareholders.