| To upgrade the industrial structure and promote high-quality economic development,several policies have been introduced to encourage corporate mergers and acquisitions and acceleration of supply-side structural reformation since 2015.M& A as a main way to reduce excessive capacity,it is also a effective way on adjusting the economic structure.Under the guidance of policies,more and more companies with overcapacity have chosen mergers and acquisitions as a effective way,and the merger ratio among industry leaders has gradually increased.However,horizontal M & A among leading companies will not only improve efficiency,but also can form market power.Market power is not conducive to the formation of fair competitive environment,which is also not conducive to the elimination of excess capacity.Under the background of supply-side reforms,this article choose the case of horizontal M & A of China’s leading building materials companies-CNBM mergers Sinoma as the research object,and then analyzes whether this horizontal M & A has improved efficiency or expanded market power? This article examines the effects of this M & A in terms of market volatility and financial analysis this two aspects.First,it utilizes event research method to analyze and judge by calculating the excess returns of the five parties-CNBM and Sinoma,competitors in the same industry,upstream suppliers and downstream customers.The conclusion shows that the market expects that the leading company CNBM and Sinoma will have a synergistic effect and also will promote effective competition in the upstream and downstream markets.The value creation of M & A comes from efficiency rather than market power.Finally,the financial data were used to analyze whether the three parties of operation,management,and finance had a synergy effect,and the results proved that acquisition of CNBM and Sinoma has improved effectiveness significantly.According to the above research,it is found that the acquisition value creation ofCNBM and Sinoma mainly comes from the improvement of efficiency.The acquisition of CNBM and Sinoma shows that under the background of the state’s encouragement of M & A to resolve excess capacity,CNBM significantly improved the market efficiency and promoted healthy competition among upstream and downstream companies.In response to the needs of industry transformation and upgrading,the government should encourage the free exit of backward cement enterprises,improve the market mechanism for restructuring and M & A of state-owned enterprises,and improve the enterprise innovation mechanism. |
