A Case Study Of The Failed Acquisition Of Linxens By Unicredit

In this process,influenced by the development of economy and science and technology,the capitalist market has also arisen.In this process,legal documents related to M & A and reorganization of enterprises have also emerged,gradually perfecting on the basis of the past,merger and acquisition(M & A)has become a major way of education under the present conditions,through the mergers and acquisitions,more companies to make up for the inadequacy of endogenous growth dynamics,in order to create synergies,eventually to expand production scale,enhance enterprise competitiveness in the market.In recent years,China's capitalist market is developing at any time,and its development speed is relatively fast However,accompanied by an increasing number of failed transactions.This paper selects the failed case of Unigroup Micro's acquisition of Linxens.Firstly,it analyzes the motivation of this acquisition: after the failure of the 80 billion yuan placement,the company shifted its development strategy and began to focus on Linxens,an upstream supplier of intelligent security chips.The company announced that it plans to acquire Linxens by issuing shares.After the completion of the acquisition,Linxens will become a stable supply source of micro connectors for Unisplendour,realizing the integration of the upstream and downstream industries of the company,generating synergies,and finally realizing the sustainable and stable development of the company.Secondly,the reasons for the failure of the merger and acquisition were analyzed.First,the ownership of the underlying assets was defective;second,Linxens' goodwill was too high.These two reasons were important for the rejection of the merger and acquisition by the Mergers and Acquisitions Committee of the China Securities Regulatory Commission.In addition,the leverage ratio of the acquisition fund is high,the acquisition price is also very high,and Linxens' profitability is declining.If the acquisition is successful,it may have a negative impact on the overall earnings of Unigroup,and it may also produce financial risks and reduce the quality of the company's assets.All these are the reasons why Unigroup finally gave up the acquisition.The negative effects include the decline of investors' expectations of the company in the market,the obstruction of the company's strategic layout,and the hindrance of the development of the leveraged merger and acquisition market.However,the failure of merger and acquisition does not mean that the impact is all negative.The failure of merger and acquisition avoids the huge In this process,goodwill impairment will also bring a certain high risk,on the basis of investment will also cause more or less losses In addition.by terminating the merger,so as to improve its own core competitiveness and increase its market share.Finally,the paper puts forward some policy suggestions for the failure of this merger and acquisition.