The Synergy Effect Study Of M&A On CSR And CNR

With the development of global market economy,more and more enterprises assemble the production of factors and capital by the way of mergers and acquisitions,to achieve the size of enterprises and financial performance growth.And China's state-owned enterprises are also based on such incentives to implement M & A.At the same time,national policy is promoting state-owned enterprises to reform,setting off a wave of M & A of state-owned enterprises.Especially,due to the implement of the Belt and Road strategy,it is common that China's state-owned enterprises assemble each other to output the technology,product and service by the way of M & A.Based on the strategic M & A in policy,it is positive or negative effects for the state-owned enterprises that depends on the motivation of M & A and synergistic effect between acquired firm and acquiring firm on post M & A.Therefore,based on the China south locomotive co.,LTD.(hereinafter referred to as CSR)and China north car co.,LTD.(CNR)of mergers and acquisitions as a case,this paper analyzes the motivation of this case and whether realizing synergy effects or not.Firstly,theory related to the motivation and synergy effects in M & A is summarized in this paper to lay theoretical foundation for case analysis.Secondly,this paper analyzes the M & A case between CSR and CNR,including analyzing and explaining the motivation,operating,managerial and financial synergy effects of M & A.Finally,after summarizing the former analysis,it is concluded that the M & A between CSR and CNR has achieved the synergistic effect in the short term.More importantly,it is key to achieving the synergistic effect that China's state-owned enterprises should follow the market-oriented M & A options,pay attention to the relevance between acquired firm and acquiring firm,reasonable payment terms and effective resource integration after M & A.