M&A Motivation And Performance Of MN Dairy Company Taking Over JLB Dairy Company

In China, Mergers and acquisitions have been increasingly frequent, and M&A have already cast an important road to strengthen market competition and enhance corporate value for enterprises all over the mainland. Cross-border mergers and acquisitions can achieve in a relatively short period optimal allocation of resources and help enterprises to accumulate more wealth. National policy guidance and market competition promote the domestic dairy products enterprises to merger and integrate. MN taking over JLB is one of the top ten M&A in 2010, but the question remains to be seen whether post-M&A corporate performance can reach to expectation, and whether can provide significant reference to future M&A in the dairy industry, all of which necessitate us into deep discussion.First of all, the paper expounded the relevant concepts of M&A performance in the beginning, introducing the theory of M&A motivation, from the view of the theory of M&A efficiency and market share effect, which laid the theoretical basis for the case analysis. Next, this paper applies MN taking over JLB as the case, summarizing the M&A motivations of MN and JLB, by integrating the relevant data. The paper constructed the evaluation system for M&A performance, analyzing the financial and non-financial M&A performance of MN. The paper analyzed the M&A performance indicators of MN three years before and after, alone or with the same industry, such as profitability, asset management ability. Moreover, this article evalued the market performance and operating performance of the case through event study method and the economical-added value method, and analyzed the main reasons for the drops of M&A performance. Finally, through the analysis of the experiences and lessons of MN, the paper put forward measures and advice to improve the M&A performance of MN, from the level of the payment choice, the management after M&A and the M&A integration, and provide the beneficial reference for MN's prospective M&A activities and other dairy enterprises who are planning to or will merger, from three stages.