Based On Denotative Expansion Of China Molybdenum Overseas M&A Motivation And Effect Research

With the globalization of economy,in order to expand the scale of development and enhance their own strength,large enterprises have taken the extension expansion strategy.Compared with endogenous development,extensional expansion strategy attaches more importance to quantity growth,scale expansion and space expansion.For Chinese enterprises,it is one of the important way to achieve long-term progress.The most direct way to realize this strategy is overseas M&A,which can effectively promote the full utilization of global resources.Although China's overseas M&A process started late,have not enough rich experience,however,the development of Chinese enterprises recovered quickly after the financial crisis,which created good conditions for foreign enterprises that were seriously hit by the merger and acquisition.Compared with companies in other industries,the scope of mergers and acquisitions of mining enterprises is expanding in the area,and its overseas M&A mode is constantly innovating.However,due to the short history of overseas mergers and acquisitions of Chinese mining enterprises,most of them have the background of state-owned assets,which makes it difficult for them to succeed in mergers and acquisitions.Therefore,in order to promote the internationalization strategy development of Chinese enterprises,this paper analysis the reason for choosing this strategy and the related implementation effect of Chinese enterprises' overseas M&A of extensional expansion practice,which has great value of theory and practice.China Molybdenum Industry is a typical case enterprise in which private mining enterprises in China successfully achieve overseas mergers and acquisitions based on extension expansion.In order to research the motivation of overseas M&A and analyze the financial effect and strategic effect brought by this event,this paper adopts document method,case method,event research method and so on,proceed from China's current development situation and the strategy of mergers and acquisitions enterprises,to explore the impact of this overseas M&A on market effect,related financial indicators of the acquirer and its international status.It is expected to bring reference to the development path selection and strategy formulation of private enterprises in the same industry or the same background.After analysis and research,this paper gets some conclusions: First,from the market performance and cooperative effect of China Molybdenum overseas M&A,the short-term market received positive feedback,and the main financial indicators and financial capabilities performed better than the industry average;Second,China Molybdenum Industry's extended expansion strategy has brought positive promotion effect to enterprise development.It can enhance the position of the enterprise in globalization,attract more talented managers and deeper internationalization.According to the research findings,the enlightenment and suggestions put forward by this paper for China's private mining enterprises are as follows: strategically,attach importance to the development of "connotation+extension",make a good assessment before mergers and acquisitions,clarify their own positioning to find the underlying assets,adapt to the national situation,take the policy express train,and fully consider the synergy effect and integration factors after mergers and acquisitions.