Why Should A Listed Company Make A One-yuan Acquisition?

In recent years,there have been frequent transactions at nominal prices in China,and the owner’s equity of the target company is mostly negative.If after the acquisition,the acquirer can give full play to the synergies,and achieve the purpose of its merger,then the one-yuan acquisition can be a development opportunity for it;but if the acquirer failure to successfully tap the potential of the target company may result in its performance being dragged down.In order to study why the acquirer chose to buy these poorly managed enterprises with one yuan,and whether its purpose can be achieved in the short term,this article studies the incident of Changan Automobile’s one-yuan acquisition of 50% equity of Changan Suzuki.The research results of this paper show that the acquirer needs to effectively integrate after the acquisition to fully achieve the synergy effect.After the acquisition,Changan Automobile only expanded the scale of the enterprise,and the merger and acquisition synergy effect was not significant in the short term.It did not realize its various merger and acquisition motivations in a real sense.Changan Automobile’s operation and development were also affected to a certain extent.This article first briefly reviews the case process;second,analyzes the acquisition motivation from two perspectives;and then analyzes the acquisition performance from three perspectives,and use this to judge whether the acquisition motivation of Changan Automobile has been realized.Finally,briefly discuss the potential problems,and put forward case suggestions from five perspectives.I hope that it can provide some experience and reference.