The Study On Synergistic Effect Of Ping An Insurance Group Acquisition Of Shenzhen Development Bank

Mixed operation has become the mainstream of the current development direction infinance industry. In response to the challenges of globalization and enhancing thecompetitiveness of Chinese financial enterprises in the global market, some domesticfinancial firms began to try mixed operation model with financial holding company. Ping AnInsurance Group who was a property insurance company at the beginning gained thepermission from the State Council of China and China Insurance Regulatory Commissionsetting up the "China Ping An Insurance (group) Co. LTD.". Since then China Ping AnInsurance (group) Co. LTD. become the first Finance Group Ltd to offer the integrationservices with insurance as the core business concluding securities, trust and so on.In June2009, Ping An Group announced to acquire Shenzhen Development Bank. UntilJune14th2012, Shenzhen Development Bank issued the official announcement saying thatShenzhen Development Bank had completed the whole legal procedure on absorbing andmerging Ping An Bank. By this time Shenzhen Development Bank and Ping An Bank becomea whole bank and the landmark deal came to a successful conclusion. Whether from theenterprises scale from both sides and the amount of money on the case or from the effects onChinese financial industry this event is a profound M&A.Producing synergistic effect is a good indicator of the success of the M&A. Through theanalysis of the synergistic effect about the M&A I want to make a periodic evaluation to theacquisition. This article mainly used Fred’s theory which states that synergy effect mainlycontains the management synergy, management synergy and financial synergy. In thestatistical analysis procedure I mainly use the financial and regulatory data such as operatingprofit, deposit, non-interest income, capital adequacy ratio and core capital adequacy ratio insix years (2008-2013). And the analysis results show that by2013, effect that Ping An Groupmergers SDB’s is positive on the whole and the integration on Shenzhen Development Bank iseffective.