A Study On The Performance Of CGE In Chile In The Context Of The "Double Carbon" Merger And Acquisition By The State Grid

Globalization of the economy is enduring a swift transformation at present.As a result,companies are actively exploring overseas markets and locations in order to find new ways to reduce energy consumption and emissions,expand their customer base and achieve greater efficiency in resource allocation.The implementation of an international strategy of "going global" and strengthening interaction and cooperation with international markets has contributed to the rise of overseas mergers and acquisitions,which have become one of the ways for Chinese companies to gain access to superior resources.With the long-term development of national energy and the development of the world’s power grids as the starting point,State Grid has actively responded to the wave of "going global" development.By insisting on independent innovation,State Grid has laid a solid foundation for developing the international market.In addition,State Grid’s rich and successful experience in grid operation and management has been put to good use in the process of overseas mergers and acquisitions.This has improved the reliability of local electricity supply and further enhanced the brand awareness of State Grid.Therefore,this paper takes the case of State Grid’s acquisition of CGE in Chile as a basis to identify the factors affecting the financial performance of State Grid’s overseas M&A and the relevant recommendations to improve the financial performance of the company,in order to play a role in the overseas M&A of high carbon emission companies.This paper takes the acquisition of CGE in Chile by State Grid as an example,and attempts to build a comprehensive evaluation system of the financial performance of the overseas acquisition from four aspects,such as solvency,operational capability,profitability and growth capability,in order to effectively assess the acquisition results;at the same time,EVA analysis is used to study the financial performance of the acquisition from the economic value added dimension,and finally,the two methods are combined for comparative analysis.The results of the analysis show that State Grid’s acquisition of CGE Chile has led to a certain degree of increase in its financial performance in 2021 in some aspects,and is a relatively successful overseas M&A case,but there are still some shortcomings.Based on the analysis of State Grid’s overseas M&A business,we propose suggestions to improve the financial performance of State Grid’s overseas M&A in the context of the "double carbon" policy,which will not only provide some reference basis for the theory of improving corporate M&A performance,but also provide practical guidance for better overseas M&A business.This study examines the M&A financial performance of State Grid’s acquisition of CGE in Chile,which has both theoretical significance and some application value.This study can play a role in complementing and improving the research system on the financial performance of corporate M&A,as well as being a reference value for the reform of state-owned enterprises and the transformation of high carbon emission enterprises.The study concludes that,although there is no significant improvement in the short-term performance of State Grid’s M&A,it is important for the strategic layout of State Grid overseas and for improving the international influence of the brand.