Research On Transnational Merger Motivationand Performance Of Mineral Enterprises ——Take Chifeng Gold Acquired Vientiane Mining In Laos As An Example

With the strong rise of China's economy,more domestic enterprises have implemented internationalization strategies to seek development overseas.The current market competition is dominated by science and technology and resources,with the continuous development of the domestic market,the demand for domestic resources is increasing,and Chinese resource enterprises obtain more abundant resources and advanced technologies through overseas mergers and acquisitions to enhance their international status and influence.However,blind mergers and acquisitions often bring financial risks,and only about 30% of overseas mergers and acquisitions of Chinese resource companies can achieve profitability.Studying typical cases will provide a good reference for the globalization strategy of China's resource enterprises.Chifeng Gold is one of the representatives of China's private resource-based enterprises to implement overseas mergers and acquisitions strategy,with the merger and acquisition of Vientiane Mining in 2018,the company officially carried out overseas mergers and acquisitions business,mergers and acquisitions so far the business situation is good,in the implementation of the strategy of enterprise globalization continues to develop.This article is divided into seven chapters in total.The first chapter is the introduction to the paper,which contains the research background and research methods selected in this paper,and points out the contributions and shortcomings of the research.The second chapter sorts out the literature related to the motivation and performance of cross-border M?A at home and abroad,and lists the relevant basic theories.The third chapter analyzes the current situation of China's energy enterprises and the factors affecting mergers and acquisitions.The fourth chapter introduces the M?A cases and briefly introduces the basic situation of Chifeng Gold and Vientiane Mining,and sorts out the M?A process of Chifeng Gold's merger and acquisition of Vientiane Mining.Chapter 5 analyzes the motivations for case mergers and acquisitions.The sixth chapter is a performance analysis of the case,first using the event research method to determine whether the merger has brought short-term wealth growth to the enterprise;Secondly,the long-term performance of Chifeng Gold's overseas mergers and acquisitions was analyzed by using the financial indicator analysis method and the economic value added(EVA);Finally,the non-financial indicators of the enterprise were analyzed.Chapter Seven is the revelation of the whole case.After research,this paper found that:(1)The main motivations for Chifeng Gold's overseas mergers and acquisitions include increasing the amount of resource storage,expanding the production scale of enterprises,taking advantage of enterprise advantages,exerting synergy effects,conforming to the opportunity of national strategy,implementing the internationalization strategy,underestimating the value of Vientiane mining,achieving diversified development,and improving anti-risk capabilities.(2)From the perspective of short-term performance,the impact of Chifeng Gold's cross-border mergers and acquisitions in the stock market is not significant,and the cumulative excess yield continues to be negative one week after the merger news is issued,and the fluctuations up and down are small.(3)From the perspective of long-term performance,chifeng gold's profitability and operational capabilities have been continuously improved after mergers and acquisitions,which has a significant effect.The return on net assets increased from-5.28% in 2018 to19.18% in 2020,and the accounts receivable turnover ratio increased from 19.95% in2018 to 61.85% in 2020,an obvious increase.Solvency and development capacity fluctuated,but gradually returned to normal over time.Affected by mergers and acquisitions,chifeng gold asset-liability ratio increased to 63.52% in 2018,and the company reduced the asset-liability ratio to 38.42% in 2020 through benign operation and management to maintain a stable level in previous years;The economic added value of enterprises was all positive in the period from 2016 to 2020,and the economic added value of enterprises before mergers and acquisitions fluctuated,from177823612 yuan in 2017 to 96183388.32 yuan in 2018,but after mergers and acquisitions,the economic added value of enterprises continued to grow and the growth trend was more significant,and the economic added value of Chifeng gold increased to 764601098.1 yuan in 2020;In terms of non-financial indicators,the company's R?D capabilities and production capacity have increased significantly after mergers and acquisitions,and in 2019,Chifeng Gold's main business,mineral gold production,increased by 36.19% year-on-year,and R?D expenses increased by50.83% year-on-year.Based on the conclusions of the research,this paper draws suggestions for overseas mergers and acquisitions of mineral enterprises: grasp the policy environment,dare to implement the globalization strategy,attach great importance to debt repayment risks and M?A integration risks,and choose M?A targets suitable for their own development strategies.