Research On The Acquisition Performance Between Mengniu Dairy And Yashili

Acquisition is one of the important ways for companies to expand and become bigger and stronger.It is also an effective way to achieve industrial restructuring and upgrading and optimize resource allocation.However,acquisition is a "double-edged sword." Successful acquisitions can bring positive effects to the optimization and reorganization of enterprises and the optimal allocation of resources.However,if acquisition is not successful,the enterprises are likely to reduce the efficiency of the allocation of resources,which will have a great negative impact on acquisition.Statistics show that less than one-third of the successes ofacquisitions between large and medium-sized domestic and foreign companies,and ten years after the merger and reorganization,the company can still successfully produce and operate.Whether acquisitions can really help companies scale up and achieve coordinated development depends not only on whether or not investors in the external market are optimistic about this merger,but also on whether or not they can achieve effective integration after mergers and acquisitions.The acquisition betweenMengniu and Yashili is the largest acquisition case in China's dairy industry.As the largest acquisition case in China's dairy industry,it has reference value not only for mergers and acquisitions in the dairy industry but also for peers in other industries.This article starts with the motives of Mengniu's acquisition of Yashili and analyzes the real purpose of this acquisition.The merger and acquisition motives are mainly divided into the following three aspects: widening the industrial chain and making up short milk powder;recruiting talents,setting up top-notch R&D and production teams for milk powder;reducing Investment costs,reduce time costs,increase revenue.Secondly,this paper uses event research method and factor analysis method to analyze the market reaction and financial synergy effect of Mengniu merger and acquisition of Yashili respectively.Through analysis,we can see from the outside that this acquisition is a relatively successful acquisition.Judging from the external market reaction,investors are optimistic about this merger and acquisition event,and affirm the results of mergers and acquisitions and future prospects.The cumulative excess return rate is positive,which fully demonstrates that the acquisition of Yashili has increased the value of shareholders and increased the wealth of shareholders,and Mengniu has rapidly occupied a place in the powdered milk market.The milk powder income has rapidly increased after the merger and acquisition.However,from an internal point of view,Mengniu's solvency and asset turnover capacity have deteriorated to some extent within half a year of the merger and acquisition.This is mainly because Mengniu's acquisition of Yashili has certain problems in the integration of resources such as finance,organization,and culture.Finally,according to the problems that have arisen after the integration ofacquisition,Ihope this paper can provide references for future acquisitions of other companies.