A Case Study Of Wanzhou International Holdings Limited's Acquisition On Smith Field

As for the global market,the uneven development of animal husbandry resources and development has promoted the cooperatio'n of transnational enterprises in the industry and the reintegration of the animal husbandry industry.Western developed countries such as the US,their animal husbandries have developed rapidly,reaching a relatively mature stage,meanwhile the demand for pork in the domestic meat market is expanding.So It is urgent to integrate the industrial chain,play a synergy effect,reduce costs,expand the market and achieve a win-win situation.At the same time,with the rapid development of information technology and frequent cross-border flow of personnel,cross-border mergers and acquisitions have also become an effective way for developing countries to seek knowledge and enhance their skills to stabilize domestic competitiveness.Under this background,firstly this paper makes a detailed introduction to the case of Shuanghui international acquired Smith Rumsfeld,including the background,process of mergers and acquisitions and integration.Secondly based on the reverse knowledge spillover path this paper analyzes the ownership advantages and internalization advantages of Shuanghui,and points out Shuanghui gets itself's domestic ownership advantages and internal advantages by getting knowledge capital such as technology and management experience from Smith Field.In a certain sense,it enriches the traditional OLI theory,having some theoretical significance.Thirdly,this paper studies the impact of this acquisition with the case study method and the economic application method in order to prove the initial motivation and goal is satisfied,and further uses the method of factor analysis to study the performance changes.Finally,this paper summarizes the significance conclusions of this research.The enlightenments that the research brings to international processing of Chinese food enterprises are:(1)through mergers and acquisitions to enhance the brand value,(2)through mergers and acquisitions acquire the implementation of industrial integration(3)to do culture and system integration in a post-merger.Throughout the analysis of the full text,this paper draws the following conclusions:(1)the case of merger and acquisition in the short term accumulated excess profits,increasing shareholder wealth and enhancing the value of enterprises,and the market is optimistic about the M&A transaction.In addition,after the merger Shuanghui has expanded domestic breeding business,reshaped the brand advantage and optimized the product structure.It can not only improve the domestic service industry chain which effectively alleviate the problem of food safety,but also expand the overseas market and promote the internationalization of Shuanghui brand.(2)in terms of long-term.performance,Shuanghui Development has improved its operation capacity,profitability and solvency after merger and acquisition.This shows that the overseas merger and acquisition has a positive effect on the overall performance of Shuanghui Development.Through the study of the case which is representative of the M&A in the food processing industry,the whole research eventually provides a summary of the way to promote the process of internationalization of Shuanghui and the way to carry out more brand-seeking or knowledge-seeking cross-border mergers and acquisitions effectively for Chinese food processing enterprises in the future.