Analysis Of Motivation And Performance Of Weichai Power Vertical Merger Of Germany Kion

Since China's reform and opening up,the market economy has flourished,the competition between enterprises intensified,relying solely on self-accumulation has been unable to keep up with the pace of economic development,enterprises will sooner or later be out of the market,mergers and acquisitions is came into being in this context,and gradually become a common way for enterprises to seek development.Nowadays,our country is in the period of economic transition,and the development of industry requires quickening the pace of structural adjustment.In this situation,with the improvement of capital market,M & A activities are becoming more and more frequent."Automobile industry " 11 th Five-Year " plan","auto industry adjustment and revitalization plan" and other policies have promulgated relevant regulations to encourage the automotive industry mergers and acquisitions.In the choice of M & A type,more and more enterprises begin to incline to vertical merger and acquisition,indicating that enterprises have realized the importance of using vertical mergers and acquisitions to improve the industrial chain and improve the performance of enterprises.Weichai Power is under Shandong heavy industry group,it invested about 8 billion 600 million yuan in the vertical merger of Germany Kion.The deal has become China's largest direct investment in Germany by 2012.Under the guidance of Shandong provincial government,Weichai Power and Germany Kion signed a strategic cooperation agreement.This cooperation is an important step to implement the global strategy,expand new markets and new product in the next five years.It also represents the development trend of China's automobile industry.Relying on domestic scale mergers and acquisitions can not meet the development needs,it is necessary to seek overseas markets,high-quality resources and advanced technology to promote the automobile industry to further upgrade and adjust industrial structure.Therefore,the investigation and analysis of the M & A activities,detailed analysis of the whole process of events,will bring the industry reference value of experience and enlightenment.The content of the article includes introduction,theoretical overview,case introduction,performance analysis,research conclusions and inspiration,is divided into five chapters.The first chapter is the introduction part,mainly introduces the research background and significance of this paper,a review of the research on vertical merger motivation and performance of domestic and foreign scholars,and expounds the ideas and framework of this research.The second chapter is the theoretical basis of automobile industry vertical merger,introduces the vertical merger meaning,expounds mode and characteristics of the automotive industry vertical merger,discusses the motivation and performance analysis method of automobile industry vertical merger,and makes an overview of the relevant theory of vertical merger.The third chapter is the case analysis part,the introduction of Weichai Power vertical merging Germany Kion case,introduces the basic situation and process of mergers and acquisitions,elaborates mode and characteristics of mergers and acquisitions,analyze the motivation of mergers and acquisitions from the perspective of Weichai Power.The fourth chapter is the performance analysis of mergers and acquisitions,expound Weichai Power financial performance(profitability,operating capacity,solvency and growth)and non-financial performance(business development ability,technical innovation ability,market share),and analyze the causes of performance in detail.The fifth chapter refines the research conclusion,and draws the inspiration from the merger case.This paper studies on the method of combining theoretical analysis and case analysis,selects a case occurred in 2012,is a representative of the industry,and mergers and acquisitions occurred several years ago,is very convenient to research performance.Through the understanding of M & A enterprises and M & A background,the analysis of the acquisition process,obtaining the characteristics of the acquisition which are obtaining local government support,absorbing high-quality overseas resources and meeting the needs of industrial development.The implementation of the acquisition of Weichai Power has the following reasons: expanse enterprise scale,save transaction costs;improve the automobile industry chain to achieve vertical integration;with advanced technology to break the bottleneck of industrial development;implement the strategy of globalization,accelerate industrial structure adjustment.This paper focuses on the perspective of financial and non-financial performance of enterprise mergers and acquisitions,the results are as follows: in the aspect of finance,solvency enhancement,improve profitability improvement and operating capacity growth,growth capacity increased;in non-financial aspects,the business development ability improvement,the technological innovation ability enhancement and market share growth.After analyzing the performance of the merger and acquisition,the author analyzes the causes of the change of performance,so as to provide reference for other enterprises.Finally,the conclusion of this paper is that the enterprise has achieved the basic intention of mergers and acquisitions vertical merger improves the financial performance of the enterprise in the short term,and strengthens the core competence of the enterprise.From the vertical merger get the following revelation: It is necessary to define the motive of merger and acquisition;Select the appropriate target enterprise is the key of vertical merger;proper timing is to identify key success factors of vertical merger;improve the resources and cultural integration offollow-up is strong guarantee of success of vertical merger.