Analysis On The Performance Of The M&A Of CSP And CNR

With the rapid development of China's market economy,mergers and acquisitions of enterprises has become an important part of China's corporate strategy.The pace of mergers and acquisitions of state-owned enterprises in China is accelerating.As an important industry of "made in China",the rail transportation equipment manufacturing industry begins to try to reform the merger and reorganization.At present,China is in the stage of strategic development of regional economic integration.Under the new normal of economy,The Silk Road Economic Belt seamlessly integrates with major national strategy under the new normal of The Belt and Road Initiative,and can make strategic guidance and policy support for regional economic integration.The Silk Road Economic Belt is the economic belt of China and Eurasia.To achieve regional economic integration,and deepen economic and technical cooperation and then to activate the new economic growth point,it is necessary to strengthen the road connection,to facilitate the realization of land transport corridors.The merger between CSR Corp and CNR Corp is achieved in such a strategic context.The merger of the two world's largest rail transport equipment manufacturers is not only conducive to the development of enterprises,but also is an implementation of the national strategy of "going out" of high speed railway.M & A integration of high-speed rail resources is considered as an important measure to implement high-speed rail to the international market.Therefore,it is very important to study the motivation and performance of the merger and reorganization of CSR Corp and CNR Corp.Based on the theory of enterprise merger and acquisition and performance,this paper briefly introduces the case of the merger between CSR Corp and CNR Corp..By using the methods of literature study,case study and event study,this paper makes a research on the motivation and performance of M&A.The analysis of M&A is mainly from the perspective of the enterprise itself and the national strategy.After analyzing the reasons,this paper analyzes the performance of the M&A from the two aspects: the event analysis method is used to construct the econometric model;the financial performance is analyzed by using solvency,operating capacity,profitability and DuPont analysis.And a brief analysis is made based on the industry impact.Finally,the author draws the conclusion and puts forward some suggestions.