Performance Evaluation Of Shineway's Cross-border Acquisition Of Smithfield

With the further development of economic globalization,Chinese enterprises have gradually entered the world market.At present,cross-border merger and acquisition has become one of the main channels of Chinese enterprises' capital export,while statistics shows that only 1/3 cross-border transactions were successful.Most cross-border mergers and acquisitions failed for culture conflicts,human resources integration problem and financial risks,etc.In those cases,cross-border transactions caused negative effects,which were larger than the positive effects they caused.This thesis selects Shineway's cross-border acquisition of Smithfield.The event study method,financial index and non-financial index methods are adopted to make performance evaluation of this case from the short-term and long-term perspectives.It concludes that this transaction has caused positive effects on the whole Shineway Group,especially for Smithfield.However,it also caused negative effects on Shineway's business in mainland China because of competition.It also concludes the experiences and lessons of Shineway's acquisition of Smithfield.The polyester industry chain of Chinese animal husbandry should undertake further development.Enterprises should take initiatives to improve its management and make integration after M&A.