On Performance Of Overseas Green M&A

Under the vigorous guidance of the government,in recent years,overseas mergers and acquisitions of environmental protection industry are in full swing.According to Yumo Consulting Statistics,in 2016,there were 14 overseas mergers and acquisitions in China's environmental protection industry,with a total amount of more than 16 billion yuan.The merger and acquisition case studied in this paper,the acquisition of EEW by BH,ranks first in terms of the amount involved.As time goes by,the topic of "overseas green mergers and acquisitions" arises.However,the data given by many organizations shows that the failure rate of overseas M&A in China is more than 50%.There are many concerns about the way of overseas M&A in environmental protection industry.How to supervise the overseas green M&A? Does overseas M&A really have more advantages than disadvantages for environmental protection industry? How to measure the economic benefits of M&A? These problems are gradually highlighted with the attention of the state and society to the cause of environmental protection.This paper uses the method of literature research and case study to analyze the impact of M&A events on enterprise market response,financial performance,green performance and market value,to explore the motives and ways of Beijing Holdings M&A,and finally gives the corresponding recommendations.This paper is divided into seven chapters: the first one is an introduction,which shows the background,literature review,framework and research methods.The second part is about the theory and background analysis of overseas green M&A performance,discussing the theoretical mechanism and the current situation of China's M&A.The third part is the case background of Beijing Holdings M&A of EEW.The fourth part is the performance analysis of Beijing Holdings.It will analyze the performance's changes of Beijing Holdings from four aspects: market reaction,financial performance changes,environmental performance changes and market value changes.It will also analyze whether the performance changes of Beijing Holdings are related to the M&A.The fifth part is the Enlightenment of the case study of Beijing Holding M&A,and gives some suggestions on the successful experience and shortcomings of Beijing Holdings found in the above performance analysis.The sixth part is the conclusion,which summarizes the conclusions after case analysis,and then summarizes the innovation points,and points out the limitations of the study.In short,this paper draws conclusions as follows:(1)This M&A promotes the improvement of Beijing Holdings' profitability,solvency,operation ability,development ability and market value,which is a successful overseas green M&A.(2)During M&A,enterprises may have negative market reaction and investors will be uneasy,but as long as enterprises could handle the M&A belt well,this kind of uneasiness will gradually disappear whithout having a negative impact on the market performance of enterprises,or even produce a positive market reaction.So there is no need to overly contradict the risky overseas M&A behavior.(3)Excellent overseas M&A decisions will not only improve the financial performance of enterprises,but also enhance the environmental performance of enterprises.The innovation of this paper is that Beijing Holdings M&A EEW provides a case evidence for overseas green M&A.Through case analysis,this paper plays a supplementary role in the literature of this kind of research.This study will provide some ideas and suggestions for the overseas green M&A in China.