Research On The Merger Effect Of Shenhua And Guodian

In recent years,the Chinese government has continuously promoted economic development and comprehensively deepened reforms.Under the background of this steady reform,state-owned enterprises have gradually upgraded their industrial structure and improved their governance models.The mergers and acquisitions of large state-owned enterprises have also increased.This paper studies the case of the merger and reorganization initiated by two large state-owned enterprises in China in the coal-fired power industry.The topic selection has important guiding significance.Based on the merger and reorganization case of Shenhua Group and Guodian Group under the background of China's state-owned enterprise reform,this paper combines the research results of post-merger synergies between domestic and foreign scholars,and uses the case analysis method to describe the background and process of the merger of the two enterprises.This paper introduces the organizational structure and the changes of senior personnel before and after the merger,analyzes the combined motivations,and studies the combined synergies from the three levels of operating,finance and management,combined with the social effects generated after the merger to make an assessment about the comprehensive effect of the merger.The research in this paper draws the following conclusions:First,the merger enhances the market competitiveness of enterprises,and also contributes to the competitiveness of China's energy industry in the world.Second,the merger has alleviated China's coal-electricity contradictions to a certain extent,but in order to completely eradicate the contradiction between coal and electricity,it is necessary to continue to deepen the reform of the power system.Third,the merger is conducive to promoting the structural reform of the energy supply side,or will become the "new benchmark" for energy supply side reform and state-owned enterprise reform.Fourth,from the synergy effect of the merger,the merger initially achieved synergy.Specifically,the synergy effect is mainly reflected in the initial realization of finance synergy,operating synergy and management synergy.At the same time,according to the research and analysis,this paper summarizes some problems existing after the merger:financial integration,management difficulty and scope,corporate culture conflict.And put forward corresponding countermeasures and suggestions as follows:attach importance to financial integration,strengthen group management and control,and focus on corporate culture integration.In general,the merger of Shenhua Group and Guodian Group has been initially successful,which provides a reference for the subsequent reform of large-scale state-owned enterprises,especially for the integration of coal-fired energy industry,but Due to the short time window,the long-term effects after the merger have yet to be tested.Moreover,the merger is only a case within the national energy industry,and the national energy system reform still has a long way to go.