Research On The Motivation And Performance Of Shenhua Group's Mergers And Reorganizations

Mergers and acquisitions are mainly used in the expansion of enterprises and the diversification of enterprises.Formulating a reasonable merger and acquisition plan can improve the efficiency of enterprise management and promote national economic development.In recent years,with the changes in the market environment,the reform of state-owned enterprises has become imperative.The key areas of reform are electricity,oil,natural gas,etc.The contradictions accumulated by the power industry and the coal industry for a long time are relatively complex.Solving this conflict through mergers and acquisitions is conducive to promoting the smooth progress of the reform of state-owned enterprises and enabling them to exert their due effectiveness.In this context,this article focuses on the merger and acquisition behavior of central enterprises in coal and other energy fields,taking Shenhua Group's merger and reorganization of Guodian Group as an example for analysis.First,this article describes the case of M & A and reorganization of Shenhua Group;secondly,it analyzes the merger and acquisition motivation of the case based on the merger motivation theory and the situation of the two companies and the current situation of the industry;finally,based on the market,financial and special performance,the article uses the event research method and financial research method to analyze the M & A performance of this case.The study draws the following conclusions: First,there are four motivations of M & A and reorganization of Shenhua Group.Second,the shareholders of the M&A company received positive excess returns,and the market reacted positively to the M&A.Third,Shenhua Group's profitability and operating capacity have been improved after M&A,while its solvency has not been significantly improved.Its growth capacity has improved in the year of M&A,but it has declined in the later period.Overall,the success of this merger and reorganization is of reference significance to the merger and acquisition of state-owned enterprises in the energy sector.