Study On The Synergistic Effect Of Yangtze Power Acquiring Peru LDS Under The Background Of "Belt And Road Initiative"

With the development of economic globalization,the trade and investment of countries are increasing year by year,and the competition among enterprises is becoming more and fiercer.In order to quickly obtain more high-quality resources and enhance comprehensive competitiveness,enterprises in countries around the world carry out cross-border mergers and acquisitions(M&A),and Chinese enterprises are no exception.In the background of the "Belt and Road Initiative" policy,Chinese enterprises actively respond to the country’s call,and practice the strategic principle of "going global".Therefore,they start to carry out cross-border M&A,and seek overseas partners to achieve mutual benefit and win-win results.However,whether it can obtain high-quality resources and achieve success depends on the synergistic effect of cross-border M&A to a certain extent.The synergistic effect of cross-border M&A is generated in the operation,management,technology and many other links of enterprises.This not only affects the realization of the target of cross-border M&A,but also affects the improvement of profitability,comprehensive competitiveness and the realization of sustainable development goals.Therefore,this paper has theoretical value and practical significance.Based on the definition of synergistic effect of M&A and relevant theories review,this paper takes M&A of Peru LDS by Yangtze Power under the background of "Belt and Road Initiative" as an example.Firstly,the background and motivation of this M&A are analyzed.Then,on the basis of Scale Economy Theory,Internalization Advantage Theory,Market Power Theory and Synergetic Effect Theory,using Comprehensive Index Analysis Method and Event Study Method,this paper analyzes the synergetic effect of this M&A in detail from three aspects:operational synergy,management synergy and financial synergy.The analysis results show that the M&A did not achieve financial synergies in the short term,but in the long term.To a certain extent,it promotes the realization of the goal of cross-border M&A.Profitability and market share have improved after the cross-border M&A,but the speed of increase is relatively slow.In addition,the growth ability has been significantly improved,and this M&A has achieved operational synergy in some degree.After the M&A,the cost control ability has not been improved,and the operation capacity has declined to a certain extent,so the cross-border M&A of LDS in Peru has not realized the management synergy.Finally,in order to realize the synergistic effect of cross-border M&A of Peru LDS by Yangtze Power,namely,financial synergy,operational synergy and management synergy,the following countermeasures and suggestions are proposed:(1)strengthen the cost control;(2)continue to improve efficiency of investment management;(3)strengthen cultural integration of cross-border M&A;(4)continuously improve the ability of resource integration;(5)continuously strengthen risk prevention and control;(6)continue to improve the level of technological innovation;(7)strengthen accounts receivable and inventory management.