Research On The Motivation And Performance Of SUNNING M&A Of Carrefour China

In recent years,the new retail model combining online and offline has developed rapidly in the retail industry.The single online or offline business model has gradually failed to meet the diversified needs of consumers.In recent years,online traffic has been saturated,and now people focus on the offline market,but whether online or offline,FMCG is always the core commodity,but also become the main entry point for giants to seize the market,as long as the rapid occupation of the market,then seize the user is just around the corner.From the perspective of the current industry,Suning,Tesco,Tencent and Ali have become the three industry giants of FMCG products,causing a great impact on the whole FMCG field and the retail industry,and have made substantial modifications and updates.As retail industry developed more than 30 years of electrical business leaders,Suning purchase and combined with its own development,to focus on the development in the Chinese market for more than twenty years of Carrefour,the use of Carrefour entity retail stores to implement online channels,pattern of development of the whole category,through mergers and acquisitions in order to achieve the enterprises through various channels,It is conducive to deepening smart retail in all categories and scenarios.This paper analyzes the case of Suning acquisition of Carrefour,and understands the reasons and performance of the acquisition,in order to provide reference for other enterprises’ acquisition activities.The motivations of the merger are analyzed from the macro and micro motivations,and it is found that the macro motivations include: easing the slowing growth of the retail industry;make up for the disappearance of online retail dividends;we will ease the plight of foreign supermarkets in China.Micro motivation mainly focuses on the following three aspects: supplementing high-quality offline scene resources;Strengthen market control and core competitiveness;we will promote the integration of both urban and rural markets.From the market performance and financial performance and business performance of the M&A performance analysis,found the acquisition to further improve the whole scene layout,strengthened Suning purchasing logistics network coverage,improve the market competitiveness and the user viscosity,promoted the growth of Suning buy grocery business,improve and optimize the store operation,Meanwhile,Carrefour’s hypermarket format also plays a supplementary role for Suning Tesco.In this case,we get the following enlightenment and summary: Retail industry is closely related to people’s life,with the rapid development of national economy,people’s consumption idea and consumption ability is also in constant change,development direction for the company development strategy and the need for timely adjustment,mergers and acquisitions of retail industry needs to combine its own development bottlenecks,the selection of the targeted to mergers and acquisitions,before M&A,the macro environment and micro situation facing enterprises should be fully considered.