A Study On The Cross-border M&A Performance Of Sinopec

At present, the world has entered the sixth wave of mergers and acquisitions. Petrochemical enterprises in china improve the rights of overseas oil and gas production,obtain refined advanced mining technology and broaden the international market through merging and acquiring enterprises which own rich oil,gas assets and advanced mining refinery capacity. Petrochemical companies in China through merging and acquiring overseas companies enhance China’s international oil pricing power, ensure our energy security and provide the conditions for running our macro economy.The paper taking Sinopec cross-border M&A in 2008-2013 as a case, uses the method of event study, financial indicators to analyses Sinopec M&A short-time market performance and business performance. This paper uses non-financial indicators to analyses Sinopec M&A performance and put forward policy Suggestions to improve the cross-border M&A performance as a reference for other petrochemical enterprises.This paper through the Sinopec cross-border M&A case analysis, mainly gets the following conclusions: 1, In short-time market performance,the significance of short-time market performance of Sinopec was bad. 2. In 2008-2013 business performance, the profitability of Sinopec was improved compared with it in 2008, and profitability perform better than the same industry level.Solvency did not show a sharp decline and solvency gradually was close to the level of the industry.Operating capacity did not perform well. The growth rate of net assets exceeded the total asset growth rate and growth rate of the industry.In 2008-2013 cross-border M&A, business performance did not perform bad.3.In the non-financial aspect, through cross-border M&A, Sinopec’s market share increased,the company had good development potential, the innovation ability increased. Sinopec cross-border M&A performance performed well.This paper, through case analysis, puts forward the following suggestions for the improvement of Chinese petrochemical enterprises cross-border M&A performance: 1, Choose acquisition targets reasonably and do the research on the target enterprises. 2, Strengthen the upstream oil and gas cross-border M&A and actively cultivate internationalized talents. 3. Improve the ability of the enterprises value evaluation and control the costs of cross-border M&A. 4.Diversify the way of payment, and strengthen the enterprise integration after the merger. 5, The government should play proper role in the cross-border M&A.