A Study On The Problems And Solutions Of Mergers & Acquisitions Of State-owned Enterprises

As the leading force in the national economy, the state-owned enterprises is the materialguarantee to make the entire national economy to develop along the socialist orientation, thematerial basis to make the national economy to be planned proportionally with high efficiency.The state-owned enterprises are in dominant position in the vital industries and key areas, inorder to provide a reliable and strong support for protection and achieve sound and rapid andsustainable development. Therefore, the reform and development of the state-ownedenterprises are so important to the consolidation and development of the socialist system, thestate’s long-term stability, and play an important role in the promotion and protection of socialharmony and stability. So it is necessary to fully protect the reform and development andmake good use of state-owned enterprise assets.Facing the question of how to propel the reform of state-owned enterprises, domesticexperts and scholars have carried out a large number of detailed studies and brought forward avariety of solutions, such as reorganization, being listed on the stock market, bankruptcy,restructuring, joint ventures, alliances, mergers, acquisitions, leasing, contracting, transfer ofstate-owned property rights and shareholding cooperative system reform etc.. Andimplementation of state-owned enterprises mergers, acquisitions and restructurings hasbecome one of the most important projects. This paper attempts to take this as a breakthrough,analyze and explore the state-owned enterprises M & A from the points of the characteristicsand trends, motivation, problems and causes, countermeasures and suggestions, the case ofBaoding of state-owned enterprises’mergers and acquisitions.The first part is the introductory, to put forward research background, significance andresearch methodologies. The second part is an overview of state-owned enterprises M & A,including the definition of state-owned enterprises mergers and acquisitions, type, status,characteristics, motivation and the necessity for research. The third part is the major problemsand the causes of the state-owned enterprises mergers and acquisitions. including the loss ofstate-owned assets that caused by M & A; risks in the M & A transactions, the main causes of these problems, including imperfect law-making for mergers and acquisitions, poor strictnessof asset valuation and unstandardized operation. The fourth part is the case studies andenlightenments of Baoding’s mergers and acquisitions, recalling a brief history of BaodingState-owned Enterprise reform, the case studies of China Ordnance Equipment GroupCorporation merging Baoding Tianwei Group, a brief analysis of the acquisition of BaodingCoking and Chemistry Plant, a brief analysis of Baoding state-owned enterprises mergers andacquisitions enlightenment as well. Fifth part is the countermeasures and proposals to regulatethe management of state-owned enterprises mergers and acquisitions, including how tostandardize procedures for mergers and acquisitions, prevent the loss of state assets, improvethe legal system of state-owned enterprises mergers and acquisitions in order to keep the lawin accordance with regulations, control risks of mergers and acquisitions, effectively preventhidden perils, give a full play of the government macro-control functions and to improve thecapital market and supporting measures。...