| China COSCO Holding Company Limited(referred to as"CHINA COSCO").In 2007,it was listed on the A-shares with assets such as container shipping,terminals,leasing and logistics.China COSCO significantly expanded its dry bulk cargo fleet in 2007-2008.It has locked up the mid-and long-term ship rental freight rates in the ups and downs of the shipping cycle.In 2008,the financial crisis broke out,and the spot market price and price fell.Loss has become the biggest drag on China’s oceans.China COSCO suffered huge losses in 2011 and 2012,becoming the A-share loss king during the two years.The financial crnsis has been hit hard,global trade has continued to slump,the shipping industry has generally fallen into bleak operations,and mergers and acquisitions between airlines have become increasingly frequent.In 2016,China’s two most representative shipping companies-China Ocean Shipping(Group)Corporation and China Shipping(Group)Corporation,merged and reorganized into China Ocean Shipping Group Co.,Ltd.("COSCO SHIP"),COSCO SHIP HOLD(601919.SH)is one of the most important core assets of COSCO Shipping Group.In this merger and reorganization,COSCO SHIP HOLD divested the bulk transportation assets that had caused huge losses and integrated the China Shipping container transportation assets.Through this merger and reorganization,COSCO SHIP HOLD is more focused on container transportation in the terminal business.China COSCO and CSCL have high homogenization competition.There are many similarities in container transportation business.There are many years of cooperation.China COSCO pays more attention to the layout and development of overseas markets.CSCL pays more attention to domestic.The layout and development of the market will effectively integrate the two airlines and reconfigure resources,which can effectively avoid duplication of investment and improve operational and management efficiency.This paper aims to explore the intention and economic consequences of COSCO SHIP HOLD M&A and restructuring.Through the in-depth analysis of the strategies and business models before and after COSCO SHIP HOLD M&A,and the comparative analysis of financial performance indicators and long-term and short-term market performance of stock prices,the results show that COSCO SHIP HOLD practices its cost leadership strategy through its economies of scale and synergies.In the second year after the merger and acquisition,the profitability,shareholder return,cash creation capacity,and value-added(EVA)capabilities were greatly improved.The merger and reorganization reached the strategic intention of mergers and acquisitions. |
