Research On Financial Integration In M&A-A Case Study On Aluminum Sector Acquisition By SH Group

Creating value is immutably true for enterprises. It has aroused attention in the industry with higher efficiency, better outcomes, more competence of improving performance and the increase of profits by merger and acquisition (M&A). However, according to statistics by authorities, 56% of the M&A transactions did not achieve the expected value objectives. As studied in this article, the main reason for such gap between practical results and expectancy was that the related party did not pay enough attention to M&A integration, particularly the financial integration, the core and key part of M&A. Nevertheless, on the base of discussing on the definition, theory and method of financial integration, the article also covers the analysis and evaluation of the background, implementation and overall performance of aluminum M&A by SH Group. It is believed in this article that the development strategy held by SH Group is correct and Aluminum M&A by SH Group is successful up to now. On the one hand, it improves the performance of SH Group and on the other hand, it brings strategic benefits to its future development. In the end of the article it is pointed out some extended value of the SH Group case.