The Study On Synergistic Effect Of Ping An’s Acquisition Of Shenzhen Development Bank

With the opening up of China’s financial services market, in the face of the global financial industry competitive pressures, Ping An noticed the trend of developed countries, international financial comprehensive operation. After years of efforts, Ping An has formed a unique pattern which called integrated financial services group. The acquisition of Shenzhen Development Bank, no doubt is Ping An’s another great attempt to integrated financial, which will provide a very meaningful reference model of finance enterprises’ mergers and acquisitions.Firstly, this article reviewed the theory of corporate acquisitions and synergy effect, then summed up that the nature of Merges and acquisitions is to pursue synergistic effect. In addition, this article summarized the classification and evaluation methods of synergies effect. On this basis, combined with the case of Ping An mergers Shenzhen Development Bank. For this acquisition, Synergistic effect’s qualitative and quantitative analysis will expanse from three aspects-operation synergy effect, management synergy effect and financial synergy effect. In addition, this article will also use the cash flow model to judge the acquisition’s result. Finally, according to the analysis of Ping An’s mergers of Shenzhen Development Bank, provide some advice for the enhancement of synergies effect of financial enterprises’ mergers and regulation of the financial sector.