Research On The Anti-merger Strategy Of Yili Company To Sunshine Insurance

After the reform and opening up,China's economic development has been rapid,and various types of enterprises have sprung up.Accordingly,in order to expand and extend,and optimize the allocation of resources,some enterprises gradually began to absorb and merge other enterprises.Since the security purchase of Yanzhong Industry in the autumn of 1993,the number of M&A activities in China has maintained a high growth rate every year.In recent years,the state has begun to advocate the reform of mergers and reorganizations of state-owned enterprises,and the mergers and acquisitions in the market are increasing.But not all mergers and acquisitions can bring economic benefits to the target company.Some enterprise purchasers buy a large number of shares of the target company directly through the capital market without the consent of the management of the target company,and ultimately plunder the control of the company.They even empty the target company in various ways,transfer assets and seek windfall profits.China's financial market started late,but with the rapid economic development and the surge of M&A incidents,many companies are already facing the threat of M&A before they can learn foreign anti-M&A knowledge and corresponding strategies.The control of these companies has been gradually transferred,but their management has no choice but to accept the fact that they have been seized or even hollowed out.Because most of the listed companies in our country lack the awareness of resisting malicious M&A,there are not many anti-M&A actions in our market,and there are only a few anti-M&A cases in our market that can be studied and studied.Although there have been many studies on anti-M&A abroad,some theories do not conform to the actual situation of our market.Therefore,the research on anti-M&A strategy has certain practical significance and academic value.When enterprises are faced with the situation that they may be malicious mergers and acquisitions,how to carry out anti-mergers and acquisitions? Firstly,this paper summarizes the relevant literature on anti-mergers and acquisitions at home and abroad.At the beginning,it reviews the relevant research on the rationality of anti-mergers and acquisitions and anti-mergers strategies by experts and scholars at home and abroad,and makes a Then,it introduces the concepts of M&A and anti-M&A,deeply analyses the motivation of anti-M&A,and summarizes the anti-M&A strategies of listed companies: firstly,increasing the difficulty of M&A;secondly,increasing the risk of M&A;thirdly,delaying time through litigation and other means.At the same time,this paper also combs the basic theories related to anti-M&A.Secondly,using case analysis method,taking the anti-merger incident of Inner Mongolia Yili Industrial Group Co.,Ltd.(hereinafter referred to as "Yili Company")to Sunshine Insurance as an example,this paper introduces the operation situation,financial performance and equity structure of Yili Company,the merger party Sunshine Insurance Group Co.,Ltd.(hereinafter referred to as "Sunshine Insurance")and the development process of the anti-merger event.This paper elaborates on several risks of the anti-M&A of Yili Company,including the possible damage to minority shareholders' rights and interests in the process of anti-M&A,and the fearless loss will be increased if the anti-M&A fails.Based on the understanding of the anti-M&A cases of Sunshine Insurance,this paper analyses the motivation of anti-M&A and the specific countermeasures used in the anti-M&A process of Yili Company.The specific countermeasures adopted by Yili Company can be summarized as defensive countermeasures and initiative countermeasures,which include: amending the company's articles of association,increasing restrictive provisions;formulating employee stock ownership plan and increasing M&A.Difficulty;Emergency suspension and delay tactics;Directional issuance of additional shares,dilution of mergers and acquisitions equity;Stock options and restricted stock incentive plan;Announcement of acquisition of Shengmu Dairy Industry,optimization of industrial chain,and improvement of comprehensive strength.In the fourth part of this article,the author also makes a detailed analysis and elaboration on the anti-M&A effect of Yili Company.Finally,combined with the experience and Enlightenment of anti-M&A of Yili Company(decentralization of stock rights lays hidden dangers for malicious M&A;sensitive crisis awareness increases the response time of anti-M&A;multi-level strategy provides guarantee for the success of anti-M&A),some suggestions are put forward for anti-M&A of Listed Companies in China,which can be roughly summarized as follows: enterprises should optimize the ownership structure and reduce the risk of being merged;In terms of ideology,we should enhance the defensive consciousness of M&A,establish appropriate mechanism to prevent and remind the occurrence of malicious M&A,and react quickly to the market.Enterprises should establish and improve the strategic system of anti-M&A and set up multi-level anti-M&A strategies.