Performance Of CITIC Bank Acquisition Of Altyn Bank

In 2015,B&R(The Belt and Road)Initiative gave commercial banks a chance to develop,for example,huge credit demand,broad overseas markets and strong support from the government,which are pushed commercial banks to place the room to improve profitability in the international M&A market,and these banks expected to increase profit margins from M&A activities.However,there are two reasons for the failure of the M&A,the one is the complexity of cross-border mergers and acquisitions,the other is there is no case study of cross-border M&A in the B&R before.Therefore,this thesis choose the case of CITIC Bank's acquisition of Altyn bank,which is the first case based on the background of the B&R,analyze the M&A performance of commercial banks under the background of The Belt and Road.First of all,this thesis analyzes the motivation of this case according to the theories of M&A motivations,find that CITIC bank is expected to expand the overseas market and achieve the synergy effect through M&A events,finally to enhance the international competitiveness and influence.Otherwise,another motivation of this case is that CITIC bank provides financial services for the B&A construction.Secondly,this these analyzes the short-term performance of China CITIC Bank's acquisition of Altyn bank by using the event study method,and finds that the short-term performance of this case is excellent,which achieves the financial synergy and operational synergy of the acquisition event;then,using the financial indicators analysis and factor analysis to analyze the medium-term performance of China CITIC Bank's acquisition of Altyn bank,finding that the medium-term performance of this case is not significantly because of some internal and external factors.At the same time,this paper also uses case comparative analysis method to compare the differences of performance of M&A which issued by CITIC bank under different backgrounds to summarize the main factors affecting M&A performance in the B&R.The conclusion as follows: from the external factors,The B&R initiative and related policies have stimulated the development potential of commercial banks;the investment environment and the level of cultural difference in the countries where the M&A targets located are directly proportional to the performance of mergers and acquisitions;from the internal factors,the efficiency of M&A integration,the efficiency of capital utilization of commercial banks and the capital structure of commercial banks will have an impact on M&A performance,which is directly proportional to it.Finally,according to the results of the performance study of CITIC Bank's acquisition Altyn bank,the thesis proposes suggestions on the feasibility of cross-border M&A activities to the CITIC bank and other commercial banks which plan to implement acquisition activities under the B&R.