Research On The Performance Of Mergers And Restructuring Between Shenhua Group And Guodian Group From The Perspective Of Resource Orchestration

In order to alleviate the contradiction between coal and electricity to ensure the safe supply of energy,the state encourages the coal and thermal power industries,which are in the upstream and downstream of the industry chain,to fully implement the integration and structural optimization of coal and electricity resources through asset restructuring and other means.In this context,Shenhua Group and Guodian Group announced their merger and reorganization into the National Energy Group in 2017.Both companies are giants in the energy industry in terms of scale and industry influence,and the M&A and reorganization of the two central enterprises is the largest in history since the founding of New China.The M&A restructuring of Shenhua Group and Guodian Group includes both vertical integration of upstream and downstream of the industry chain and horizontal mergers and acquisitions of the same business;in the process of integrating the group’s subordinate enterprises,a co-funding approach is also adopted,which injects a new momentum into the restructuring.Therefore,the integration of resources in the process of this M&A restructuring is more complicated.With the influence of policies,more and more coal power companies hope to achieve integrated coal power operations through M&A,and thus improve their performance.Therefore,it is necessary to explore how to effectively integrate resources during the merger and reorganization of National Energy Group,and in addition the performance achievement of this M&A may play a certain benchmarking role for future coal and power companies’ mergers.Based on the resource orchestration perspective,this paper selects the case study of Shenhua Group’s M&A and restructuring of Guodian Group as a case study to explore Shenhua Group’s resource orchestration behavior in the process of M&A and restructuring and analyze its M&A and restructuring performance.In the first and second parts,this paper reviews the literature on M&A restructuring and resource orchestration,and introduces resource orchestration theory,synergy theory,and market power theory to lay the theoretical foundation for the subsequent research.In the third part,this chapter introduces the development background of the coal power industry to which both parties belong and the profile of the case company,and sorts out the process and motivation of the M&A restructuring.In the fourth part,this chapter analyzes the resource orchestration behavior of NNPC in the M&A restructuring process.In the fifth part,this chapter uses event study method,financial indicator analysis and data envelopment analysis to evaluate the M&A and restructuring performance of the company.The sixth part draws conclusions from the case study.In this paper,we find that companies can improve their M&A performance by conducting resource orchestration under strategic guidance.Based on the rational construction of resource portfolio,Shenhua Group performs resource bundling to form competitive capability advantage,and finally helps the company achieve its business goals through resource utilization,which improves the level of corporate performance.In addition,compared with the pre-merger period,the performance of NEC has been significantly improved after effective resource orchestration,and basically achieved positive effects in terms of short-term market response,long-term financial index performance and resource input-output efficiency.