Research On The Contribution Of Acquisition Of Mengniu To COFCO

With the rapid growth of the Chinese economy over the last few decades,China's economic ties with the rest of the world have been greatly strengthened.Chinese enterprises are facing more opportunities and challenges on the world stage while competing with their counterparts.In order to expand their scale and enhance their competitive advantages,Chinese enterprises need to carry out various M & A activities.Enterprises can better seize the opportunity and deal with challenges through acquisitions by achieving the optimization and integration of resources.The advantages and contribution of acquisitions to a firm's development had become a major research filed.This selected on COFCO's acquisition of Mengniu as the research topic.This case is one of the most well-known cases in the food industry in China,through the analysis and study on the acquisition,we aim to offer inspirations and references for other enterprises.In this paper,we utilize both quantitative and qualitative analysis together with a literature review and investigation methods to examine the contribution of acquisition of Mengniu to COFCO.To provide research background and illustrate the significance of the paper,we first summarised the motivations of M&A and the key points of the acquisition plan.The primary focus is put on on the analysis of acquisitions Mengniu's contribution to the performance of COFCO on two aspects: financial contribution and non-financial contribution.Regarding financial contribution,we studied the impact of the acquisition on enterprise's solvency,operating ability,profitability,growth,and contribution to its shareholders.With respect to non-financial contribution,we analyzed the strategic objectives of the enterprise,brand value,technological innovation,quality assurance and green environmental protection.This paper investigates the changes of enterprise financial data and decomposes the efforts and progress made in the relevant indicators of the long-term development of enterprises.On this foundation,it examines the revelation and reference significance of COFCO and Mengniu merger case to other enterprises.It is concluded that COFCO is appropriate in choosing the timing and the target of Mengniu as the subject of the acquisition.We believe that it serves as a great example of supply-side reform in the dairy industry and development of the export strategy.In terms of future direction,we suggest that firms pay close attention to the optimization of the brand portfolio and the optimization of the channel layout.Finally,this paper makes a comprehensive evaluation and summary of the acquisition,and comprehensively analyzes its overall contribution to COFCO.