The Case Analysis Research On The Merger Of Shineway Group

With the trend of global economic integration and the spread of the financial crisis,corporate mergers worldwide are growing to become a trend, with characteristics of wide range, large trading amount and cross-border transactions. The prestigious economist Stephen George once said: "There is no big business in the United States that has not developed through mergers to some extent." This has confirmed from one side that corporate mergers can optimize the industrial structure, improve the productivity factor usage, and enhance the core competitiveness of enterprises. Meanwhile, in the deepening of China's market economy today, more and more Chinese enterprises to go abroad, to the world, and mergers have become the core of many business development strategy, the study of corporate mergers have important theoretical and practical significance.In terms of different functions of industry merger or acquisition involving organizational characteristics, mergers and acquisitions can be divided into three basic types: horizontal mergers, vertical mergers and mixed M&A. The three types of M&A activities in the development of our country are presented in diversified situations.Basically vertical mergers happen mostly in the steel, oil and other energy and basic industries, the costs of raw material of which has a significant impact on the efficiency of the sector. In September 2013, Shineway International and Smithfield officially signed agreement of M&A deals, indicating the success of the merger of Chinese enterprises in the United States. Smithfield Foods Inc. is the largest pig breeding and pork processing companies in the US, while Shineway as China's largest meat processing enterprise will create a complete success overseas integrated industry chain through this vertical merger, meanwhile, realizing the effect of preventing food safety risks and sharing the US market continues to stabilize consumer market with the US high-end brands.This article from the Shineway's cross-border M&A case was analyzed to start to explore the background motivation, M&A process, the results of the evaluation to DuPont analysis of the transactions sides to analyze the financial position and results of operations, and elaborated acquisition process, based on the financial perspective, the mergers and acquisitions that has achieved financial results.