A Case Study On The Acquisition Of China Guangfa Bank By China Life Insurance

Over the world,mixed operation is the general trend.With the improvement of living and technology,more and more people are involved in financial activities and their demand for financial products and services is becoming more and more diverse.China's regulatory has gradually changed from separate supervision to mixed supervision,financial institutions have also begun to try to carry out comprehensive operations,There is a growing share of the insurance company and the bank,the voice of the mixed operation of the financial industry,is getting higher and higher.As China's economy declined,margins in the banking sector fell,non-performing loan ratios rose,and foreign investors began selling Chinese banks' shares,giving Chinese insurers a good time to buy up bank shares.With the relaxation of government policy,there are more and more cases of mutual acquisition among financial enterprises.We can get some valuable experiences for similar acquisition cases by analyzing this case.This paper briefly introduces the present situation of the two parties and the acquisition motivation of China Life Insurance,and also introduces the specific process of the acquisition,including the acquisition background and the purchase price,and finally analyzes the problems arising after the acquisition.Through the analysis of synergy effect after acquisition,we find that this acquisition has certain synergy effect in operation,finance and management,especially in operation.Finally,according to the case of acquisition,the article puts forward some suggestions: Acquiring firms should choose the right time and strengthen the integration of resources after acquisitions;The government should formulate policies on acquisitions,standardize and guide acquisitions,and prevent the expansion of post-acquisition risks;Enterprises should strengthen Internal Management and Cultural Construction.