Research On The Synergistic Effect Of Syngenta In Merger And Acquisition Under Group Control

Since 2014,the merger and reorganization of central enterprises has gradually stepped onto the economic stage of effective allocation of state-owned capital in China,so as to realize the adjustment and optimization of China’s economic structure under the new normal.The reorganization of central soes during the 14 th Five-Year Plan period is also expected to take place in key areas such as chemical industry,steel,coal and power,information,medical and health care,and emerging industries.In this context,as large state-owned enterprises in the chemical industry,China National Chemical Corporation and China National Chemical Corporation（SINOchem）restructure and further integrate their internal enterprise resources,which is conducive to optimizing their industrial structure and enhancing their international competitiveness.The merger and reorganization of the "Two Chemical" groups took the lead in business integration with the agrochemical business as the vanguard,established the integration platform Syngenta Group,and injected the agrochemical assets of both sides into the platform,and syngenta group carried out the business integration,which was a landmark event for China’s agrochemical industry to build a giant and optimize the industrial structure.This article from the perspective of group control and coordination effect,using literature research,case method,event study method,comparative analysis and synthesis methods of control,discusses the scope of business integration,industry status quo at home and abroad to integrate agent,and the influence of the implementation of our agrochemical business integration path and the synergy effect,Then explore the integration of syngenta group agrochemical industry development and value creation.After the research,the following conclusions are drawn: First,the motivation of business integration mainly comes from two points.First,the development status of the industry is good,which lays a foundation for the development of integration platform;The second is to establish a core management and control group to adjust the resources of various enterprises within the group to improve r＆d capacity,promote industrial coordination and balance cash flow.Second,through the analysis of the implementation path and effect of business integration,it is found that the merger and reorganization has a positive impact on most of the financial performance of Syngenta Group,operating capacity and debt paying capacity remain basically stable,profitability has been significantly improved,but there are some deficiencies in development capacity;In terms of market performance,the main listed companies of Syngenta Group have achieved good market effect.Thirdly,based on the above analysis,the enlightenment of this paper includes that promoting the integration between enterprises is the key to reduce costs;Business integration is to achieve synergistic effect to improve business efficiency;Make full use of cash flow to reduce integration risk.At the end of the article the effect of synergistic effect based on syngenta group,further put forward the Suggestions to syngenta group business integration,hope the business integration exposed problems,as well as by the implementation of the "two" group in the process of merging other business integration direction and focus,and other large state consolidation has certain guidance and the warning role.