International Consumer Goods Giants' M&A Experience For Moutai Group's Strategic Business Expansion

This thesis analyzed MOUTAI group's failure in multi-category and brands expansions, capital strength and its M&A history. It came out the conclusion that the key mistake for MOUTAI's strategic expansion was the lack of M&A while only expanding its business internally.This thesis analyzed the M&A target, capital expenditure and financial leverage of the international liquor and beer giants such as DIAGO, Pernod Ricard, Heineken and other companies. It came to the conclusion: First, M&A was the key path for the giants' globalization, categories and brands expansion even with large capital scale and price premium; Second, acquiring the segmented market top brands was the fundamental strategy in the M&A decision to upgrade the comprehensive brands competitiveness; Third, with their cash flow creation ability, the giants generally raised their financial leverage to 2-4 times to support their annually acquisition of 8-10 companies which became one of the daily operation practice.MOUTAI should enhance the key status of M&A in the strategic expansion. And it should strengthen the acquisition of top brands in related liquor industry and struck large scales M&As with higher financial leverage and capital advantages.