PENGYU Group Swallowed Up The Q City Running Water Group

As the important component of the socialist economy, private enterprise has played important role in the state-owned organizational reform, the merger to the state-owned enterprise gradually expanding from "the monopoly profession" to "the non-monopoly profession". Also along with the municipal administration public domain, in August 2003, PENGYU group invested 150,000,000 Yuan to purchase 70% state-owned stockholder's rights of the Q city running water group. It was a successful case at that time after the country let loose the pipe network and the privately operated capital holding entire urban water supply system.After PENGYU group swallowed up the Q city running water group, although certain merger and acquisition conformity work has been carried on, it has not made great progress. After the merger, many problems appeared such as the staff to the new enterprise extreme discontented, the essential staff drain, the government intervention management, the owner and the operator gives rise to problems. This article centers on a series of questions and the conflicts occurred, induce and analyze its origin to the existence question and the conflict, which holds the point that the cultural difference caused the cultural conflict, the processing benefit counterparts to relate improper and the excessive centralization and so on has been the major cause. These questions'existence has affected the merger and acquisition achievements to a great extent. In view of a series of questions, theoretical knowledge and enterprise culture management, conflict management, benefit counterparts, propose the conformity re-engineering plan. This article intends to enhance the merger and acquisition achievements to provide beneficial model for the enterprise merger and acquisition fast conformity through the case study.