A Performance Study Of Tianqi Lithium’s Cross-border Leveraged Buyout

The global wave of electrification has propped up an unprecedented huge space for lithium.The lithium industry has become an emerging sunrise industry that countries are competing to develop.The country has always adhered to the goal of "carbon peaking by 2030 and carbon neutrality by 2060".Therefore,for the upstream lithium resources,the state attaches great importance to the exploration and development of lithium resources.Lithium is regarded as one of the minerals that need to be "reserved and protected" and one of the national strategic minerals.Driven by emerging technologies and changes in energy technology,the global lithium battery industry has entered a period of rapid growth,and the demand for new energy vehicles constitutes the core driving force.Of course,the expansion of midstream enterprises requires sufficient raw materials as support,and strong resource reserves can provide security for the production of midstream lithium salts.Under the pattern of oligopolistic competition in the industry,the higher the total amount of lithium resources owned or controlled by the enterprise,the greater the possibility of participating in the pricing power.In addition,resources directly determine the production cost of enterprises.Therefore,it is particularly important for enterprises to improve the industrial chain layout and low-carbon technology R&D innovation,effectively integrate and control lithium upstream resources,and ensure the safety of the lithium industry chain.This paper selects a typical corporate leveraged buyout case oflithium resources in China,taking Tianqi Lithium’s acquisition of a Chilean mining and chemical company as an example.Firstly,by analyzing the industrial environment and current development trend,this paper analyzes the motivation of the enterprise to implement this acquisition from the aspects of relevant government policies,economies of scale,enterprise development strategy and social synergy on the basis of understanding the background and process of enterprise merger and acquisition.Secondly,based on the event study method,this article analyzes whether the response of the company’s acquisition activities in the market subjects is strong and how it affects the company’s short-term performance.Thirdly,the catastrophe progression method is used to evaluate the benefits of the enterprise to the target enterprise after the acquisition,as well as the impact of the enterprise’s business status and financial management,from three aspects of financial performance,collaborative performance and social performance.Through entropy method,the relative importance between indicators is used to weight the indicators.This method avoids the subjective intention score,so as to evaluate the enterprise performance more scientifically and objectively.This method avoids subjective intention scoring and facilitates a more scientific and objective assessment of corporate performance.Finally,it systematically analyzes the problems faced by the company and puts forward countermeasures.