Research On The Performance Of Luoyang Molybdenum's Cross-border Mergers And Acquisitions

With the continuous expansion of the "Belt and Road" and the deepening of the export-oriented economy,more and more companies choose to "Go abroad" to obtain resources and expand markets through overseas M&A to improve their competitiveness.Successful cross-border M&A can help companies enhance brand awareness,improve technology,and expand markets.On the contrary,failed M&A may increase corporate financial risks and damage corporate interests.Will overseas M&A have a positive or negative impact on the company needs to be reflected through changes in performance.Therefore,analyzing the motivations of companies' cross-border M&A and evaluating their performance can help to fully understand the opportunities and difficulties faced by companies,and can also provide reference for other companies.This article first introduces the research background and significance,combs the related literature,summarizes the relevant views of domestic and foreign scholars,and proposes the research content and methods of this article.Secondly,it defines the related concepts used in this article,discusses the motivational theory of cross-border M&A,and explains the related methods used in this article.After that,analyze the development status of China's non-ferrous metal industry and the status quo of M&A,conduct a SWOT analysis of Luoyang Molybdenum and Congo(DRC)TFM,and summarize the motivations for mergers and acquisitions.The fourth part of the article uses the event research method to analyze the short-term performance,and uses the financial indicator method and non-financial indicator method to analyze the long-term performance.The fifth part is the enlightenment of the case,and provides reference for other companies that want to conduct cross-border M&A.Finally,a summary of this case is made,pointing out its deficiencies and prospects for the future.The research conclusions show that: Luoyang Molybdenum's acquisition has realized the original motivation for the acquisition.Judging from the results,it has had a positive impact on the short-term and long-term performance of the company,and it is a successful merger.However,excessive financing in the process of mergers and acquisitions increases the operational risks of the company.