Research On The Motivation And Economic Consequences Of Zijin Mining’s Intangible Asset M&A

Against the backdrop of accelerating global economic integration,cross-border transactions and corporate mergers and acquisitions are accelerating,and there is a clear trend towards internationalization of capital flows and innovation in financial instruments.Among them,intangible assets have become an important aspect of mergers for enterprises,especially mining enterprises.In the context of the Chinese government’s external "going global" strategy and the "the Belt and Road" initiative,the domestic "supply side reform" and other measures to promote the sustainable development of China’s economy,Zijin Mining carried out three mergers and acquisitions of domestic and foreign enterprises in 2020,and generated huge intangible assets during the merger.This thesis reviews the motivation theories for domestic and foreign mergers and acquisitions of enterprises in existing literature.From the perspective of intangible assets,this thesis focuses on the acquisition of high intangible assets by Zijin Mining,which acquired three companies: mainland gold,Julong copper,and Guyana gold fields in 2020.Through literature research,case study,and quantitative and qualitative analysis,this thesis examines the reasons for the generation of high value intangible assets by mining enterprises led by Zijin Mining during the merger process The impact and risks caused by the enterprise were studied.During the research process,this thesis first introduced an intangible asset evaluation model in the field of mineral valuation to analyze the value created by mergers and acquisitions.Then,the synergistic effects formed by mergers and acquisitions were evaluated from three aspects: operation,finance,and management.The research conclusion found that Zijin Mining’s internationalization strategy of "acquiring domestic and foreign mineral resources through mergers and acquisitions" has achieved success;Zijin Mining needs to strengthen its attention to the risk management of high intangible asset mergers and acquisitions;Zijin Mining has achieved its acquisition motivation of acquiring intangible assets and key strategic resources.On this basis,this thesis proposes corresponding suggestions from the perspective of corporate governance.The thesis innovatively studied the motives of enterprise mergers and acquisitions from the perspective of intangible asset arrangement and integration,and introduced asset evaluation methods in the process of studying the motives and economic consequences of enterprise mergers and acquisitions.This can provide reference for the valuation of intangible assets in the mining industry and also provide reference suggestions for China’s mining mergers and acquisitions activities.