Study On The Risk Of Zijin Mining’s Cross-border Acquisition Of Continental Gold

Under the background of economic globalization,more and more enterprises choose to "go out".While cross-border M&A has become a boom,many companies still suffer the painful price of M&A failure.Due to the lack of experience in cross-border mergers and acquisitions of Chinese enterprises,many enterprises only see the huge economic benefits and resources that mergers and acquisitions can bring,and ignore the risks and crises hidden behind mergers and acquisitions.Due to the coexistence of risks and interests,correctly understanding the uncertainty of cross-border M&A,accurately grasping risks and formulating scientific and reasonable preventive measures have become the key to whether enterprises can successfully complete M&A transactions.The existing research on cross-border M&A cases rarely takes mining enterprises as research objects,and Zijin Mining,as a giant in the industry,is very representative of research.Under the implementation of the national dual carbon policy,the traditional mining industry is being squeezed by new energy lithium,and it is worth studying and exploring whether large-scale acquisitions in the same industry still have expansion value,and whether the risks caused by this will increase.Therefore,this paper selects the case study of Zijin Mining’s acquisition of mainland gold,mainly to explore two aspects,one is to identify the risks of this merger,and the other is the risk prevention and control measures taken by Zijin Mining.This paper first sorts out the literature related to cross-border mergers and acquisitions,lists the relevant concept definition and theoretical basis,and reviews the final literature.Then introduce the case study,including industry background,information on both parties to the merger,M&A process and motivation analysis.Then,the M&A process is divided into pre-M&A stage,M&A implementation,M&A integration stage,and risk identification is carried out section by section.The pre-M&A period is mainly analyzed from two perspectives: pricing risk and environmental risk,including stock price fluctuation risk,valuation risk and goodwill risk,and environmental risk including industry risk and legal risk.The implementation stage of M&A includes financing and payment,financing method and capital structure affect financing risk,exchange rate fluctuations and cash flow affect payment risk.The completion stage of M&A is mainly integrated issues,which are divided into financial integration and human resource integration.After that,the F-score model and β coefficient were used to calculate and analyze the unsystematic risk and systemic risk of Zijin Mining respectively,and its overall risk was evaluated.Finally,the risk prevention and control measures adopted by Zijin Mining are analyzed,and the M&A enlightenment is obtained for reference: grasp the M&A opportunity and be familiar with the M&A environment;Reasonable financing channels and arrangement of payment plans;Pay attention to mergers and acquisitions integration and optimize management models.