M&A Performance Analysis Of Weichai Power Co.,Ltd. From The Perspective Of Secondary Innovation

China is currently in the "industrialization" era to the "post-industrialization" era of industrial structure change and restructuring period,although as the world’s first manufacturing country,but the manufacturing industry is large but not strong,the quality of development is not high enough problem is still very prominent.Therefore,manufacturing enterprises through mergers and acquisitions of international leading companies in the same industry to break the technical barriers,absorb technology and achieve secondary innovation gradually become an essential step for China’s manufacturing enterprises to participate in international competition and develop overseas markets.The paper aims to explore how Weichai Power Co.,Ltd.achieves secondary innovation by absorbing and integrating technologies,influencing M&A performance and drawing lessons from it to provide reference for the development of technological innovation in the manufacturing industry.Firstly,the current status of domestic research on secondary innovation,M&A performance and its relationship with technological innovation is reviewed,and the relevant basic theories are explained;secondly,the industry background and M&A process of several technology M&As of Weichai Power are introduced,and their motives are analyzed;meanwhile,the application and effects of secondary innovation theory in corporate M&A activities are explored in the context of global secondary innovation model.Finally,the long-and short-term M&A performance of Weichai Power Co.,Ltd.was evaluated through a comprehensive analysis of the event study method,financial index analysis,and innovation index analysis.After analysis and research,this paper concludes that Weichai Power has clearly defined the overall objectives of M&A,improved its financial performance through technology M&A,and at the same time focused on the absorption of high and new technologies and secondary technology innovation,effectively solved the core technology problems and achieved technological catch-up and technological surpassing.To provide reference experience for related manufacturing enterprises: when carrying out M&A activities,they should reasonably select M&A targets,and should comprehensively consider M&A performance and actively improve their own technology absorption and secondary innovation capabilities in order to achieve the best M&A results.