Luoyang Luanchuan Molybdenum Industry Group Cross-border Merger And Acquisition And Its Performance Analysis

With the development of the national “the Belt and Road”Construction conceive and the impact of domestic supply side structural reform,non-ferrous metal enterprises can achieve structural restructuring and strategic adjustment of stock resources through cross-border mergers and acquisitions.Luoyang Luanchuan Molybdenum Industry Group is a leading enterprise in the domestic nonferrous metal industry.After years of development,it has become a diversified international group.Luoyang Luanchuan Molybdenum Industry Group has successively acquired multiple industries such as copper and gold,niobium and phosphorus,copper and cobalt,and minerals.The number and scale of mergers and acquisitions are among the best in the industry.Among them,it spent 2.56 billion US dollars to acquire copper and cobalt from Democratic Republic of Congo,becoming the largest overseas merger and acquisition case for domestic nonferrous metal enterprises in the same period,Studying the cross-border M&A and its performance of Luoyang Luanchuan Molybdenum Industry Group is of great value for the group itself and other nonferrous metal enterprises to better “go global”.This article draws upon its research background,Introducing the study’s purpose and significance,generalizing its research content,methods.By consulting the literature and theories on the performance of cross-border mergers and acquisitions of nonferrous metal enterprises at home and abroad,it provides the relevant theoretical basis for subsequent research on mergers and acquisitions performance.Secondly,it introduce the industry overview,introduces the basic situation of Molybdenum Industry Group,and summarizes the M&A process of the group based on the acquiree’s enterprise,M&A motivation,and M&A.Then,the event study method is used to analyze the short-term performance of the group at various stages of mergers and acquisitions.The long-term performance of the group is studied using the synergy theory of enterprise operation,management,finance,and intangible assets.The comprehensive performance analysis of the group is conducted based on the entropy method.Finally,the conclusion is summarized and the research finds that after the merger and acquisition of the group,the motivation for the merger and acquisition has basically been realized,which has a positive impact on the short-term performance of the group.Although the long-term performance has increased,it is not robust,and there are risks in financial and operational aspects.It is necessary to pay attention to the integration and risk management after the merger and acquisition,while providing substantive reference for the development of Chinese nonferrous metal enterprises’ mergers and acquisitions.