Research On Synergy Effect Of Shenghe Resources Mergers And Acquisitions Oriented By Whole Industry Chain

With the rapid growth of the global economy and the rapid expansion of the capital market,the scope of competition among enterprises is also increasing,gradually shifting from core competition to competition between industrial chains.Therefore,more and more enterprises are beginning to transform to the whole industrial chain model.In order to maintain sufficient advantages and competitiveness in the fiercely competitive market environment,enterprises continue to extend to the upstream and downstream links of the industrial chain through mergers and acquisitions,and deploy the entire industrial chain model.Rare earth,as an "industrial vitamin",has attracted much attention for a long time.my country’s rare earth resources are rich in reserves,but there are also problems such as resource waste,environmental pollution,low-end excess and high-end shortage.In order to adapt to the new situation and enhance market competitiveness,enterprises in the rare earth industry have also begun to try the development model of the whole industry chain.With the support of relevant policies,they have continued to extend to the upstream and downstream of the industry chain through mergers and acquisitions.Can mergers and acquisitions really make companies profitable and promote the rare earth industry on the track of healthy development? This paper takes Shenghe Resources,which has a relatively complete industry chain development in the rare earth industry as an example,and conducts an in-depth discussion and analysis of the synergy effect of its mergers and acquisitions.On the basis of sorting out the development status of the rare earth industry,this paper firstly analyzes the mergers and acquisitions behavior of Shenghe Resources in the market and the motivations for mergers and acquisitions.With the goal of building a whole industry chain model,it studies the specific mergers and acquisitions of Shenghe Resources in the market.path.Secondly,based on the entropy weight-grey correlation-TOPSIS model,the performance of Shenghe Resources before and after the merger is studied and analyzed,and it is concluded that Shenghe Resources has achieved a certain degree of synergy in the M&A activities oriented by the whole industry chain,and from the operation,management and Three aspects of finance analyze the specific reasons for the synergy effect of mergers and acquisitions.The research shows that the M&A oriented by the whole industry chain of Shenghe Resources has formed an industrial synergy effect,which has promoted the development of the enterprise to a certain extent.However,due to the problems in the industry environment and post-merger integration,the synergy effect is not significant.Finally,suggestions are put forward for the industrial chain development model of the case enterprises and rare earth industry.