Research On The M&A Motivation And Performance Of Ganfeng Lithium Based On Industry Chain Integration

Since 2014,new energy vehicles have entered the stage of rapid development,bringing great vitality to the whole lithium industry chain.At the same time,more and more competitors and capital flow into this market,and enterprises in the lithium industry chain are facing unprecedented opportunities and pressures.Due to the scarcity of upstream resources in the lithium industry chain,ALB of the United States,SQM of Chile,Tianqi lithium and Ganfeng lithium of China have become the industry leaders through the integration and merger of upstream resources in the industrial chain to enhance market competitiveness.It can be seen that industrial chain integration and merger is an important way for lithium product manufacturing enterprises to gain competitive advantage.This paper analyzes the status quo of lithium industry chain integration,and uses PEST model to analyze the relevant external environment.It holds that the main motivations of lithium industry chain integration and merger are: good development prospect,competitive advantage,star business cultivation and synergy effect.In addition,from the perspective of M & A capability,this paper analyzes the mechanism of M & A performance of lithium industry chain integration,and holds that enterprises can achieve M & A performance by giving play to the M & A decision-making ability in the preparatory stage,the M & A transaction execution ability in the execution stage and the integration ability after M & A.As Ganfeng lithium industry is influential and typical enough,this paper selects this company as a case study.This paper analyzes the motivation of Ganfeng lithium industry M & A based on industry chain integration,and analyzes the M & A ability of Ganfeng lithium industry by using the mechanism of M & A based on lithium industry chain integration.Then,we use CAR model and BHAR model to analyze the short-term market performance and long-term market performance of M & A based on lithium industry chain integration,and evaluate the financial performance before and after M & A through financial indicators.The research results show that Ganfeng lithium can achieve M & A performance by exerting the following M & A capabilities: Having perfect investment decision-making management system,good identification ability of M & A targets and existing resources identification ability in the preparation stage of M & A;Reasonably valuing M & A targets and making M & A plans favorable to itself in the negotiation stage of M & A;Perfect integration of raw material supply,production and operation,technology and finance after M & A.Through these M & A capabilities,Ganfeng lithium industry has further realized the synergy effect.By giving full play to the above-mentioned M & A capabilities,Ganfeng lithium has achieved considerable short-term market performance,long-term market performance and financial performance after M & A.Based on the above research,this paper summarizes the practical implications and suggestions,hoping to provide reference and guidance for lithium product manufacturing enterprises to integrate and merge the industrial chain.