Tianqi Lithium Acquisition Of SQM Motivation And Performance Analysis

The relevant contents of the new energy vehicle industry chain are highlighted in the 14 th five year plan.Lithium related industry is the middle and upper reaches of the new energy industry chain,and lithium resource itself is China’s strategic resource.Its industrial changes will have a wide impact on the whole industry chain.China’s related enterprises want to seize the opportunity and grow rapidly under the new development mode of domestic and international double cycle.M & A has become a key means.Therefore,it is particularly important to study the relevant cases in the past and summarize the experience.Based on the above background,this paper selects the case of cross-border M& A of sqm by Tianqi lithium,a leading enterprise in the upstream of the new energy industry,to study and analyze the motivation and performance of this M & A event.In the aspect of motivation evaluation,combined with previous theories,this paper makes an in-depth discussion on the M & a motivation of weather lithium industry;In terms of performance evaluation,starting from the long-term and short-term aspects,combined with event research method,financial index analysis method and EVA analysis method,it is found that Tianqi lithium’s M & A activity is favored by shareholders in the short term and improves the enterprise value.In the long run,its high debt cost and the decline of market environment make its post M & a performance unable to meet the expectations,but considering the resources in its hands,As well as the development trend of lithium related industries,the evaluation of their long-term performance can not be generalized.Finally,through the case analysis of Tianqi lithium’s M & A of sqm,the following tips are put forward for its M & A behavior: comply with the policy guidance;Establish corresponding risk control system;Careful selection of M& A objects;Pay attention to resource integration and give play to synergy.