Research On The Integration And Performance Of Continuous Mergers And Acquisitions Of CR Sanjiu

With the improvement of the pharmaceutical industry system,the intensification of the aging population,the rapid development of urbanization and the soundness of the medical security system,the demand for pharmaceuticals from China’s residents has been increasing.At the same time,the promulgation of several pharmaceutical policies and laws has provided new opportunities for the development of pharmaceutical enterprises in China,such as the promotion of the two-ticket system and the expansion of quantity-based procurement.In order to achieve long-term development,successive M&A have become an effective way for domestic enterprises to expand their scale,and the effective management of resources obtained from successive M&A can better improve corporate performance.In this paper,we investigate the integration process and performance of CR Sanjiu’s successive M&A during2012-2020 from the perspective of resource orchestration,with a view to providing lessons that can be learned for pharmaceutical companies to carry out successive M&A.This paper describes the development status of the pharmaceutical industry and relevant policies and laws,and introduces the overview of CR Sanjiu’s consecutive M&A.According to the strategic orientation of the enterprise,CR Sanjiu’s successive M&A behaviors during 2012-2016 are classified as focused M&A phases and those during2017-2020 are classified as diversified M&A phases,and its resource orchestration behaviors in different successive M&A phases are analyzed in detail and studied in depth in three aspects,namely,building resource portfolio,integrating resources and creating value with capabilities,respectively.Finally,we analyze the impact of corporate core competencies by M&A and integration by studying the changes in CR Sanjiu’s product,market and technology levels,analyze the short-term market effects of its successive M&A through the event study method,and analyze its long-term performance after successive M&A through financial indicators.The results of the study show that CR Sanjiu’s development strategies at different M&A stages guide its successive M&A behavior.CR Sanjiu has more fully integrated the business,brand,technology and production resources acquired after the M&A.CR Sanjiu’s successive M&As have enriched its product lines and improved its market competitiveness and core technology capabilities to a certain extent,but they have not brought significant favorable effects on its short-term and long-term financial performance.As a result,this paper draws research implications: first,companies should plan their industrial value chains with corporate strategies as a guide,choose their M&A targets carefully according to their corporate development strategies,and adjust their development strategies in a timely manner according to their internal and external environments.Secondly,enterprises should fully integrate the acquired resources after the M&A to maximize the synergistic effect and realize the growth of enterprise value.Third,enterprises should adjust their M&A strategies in time to improve mid and long-term performance.