Research On The Motivation And Effect Of Tianqi Lithium’s "Snake Swallowed Elephant" Merger And Acquisition Of SQM

2021 is the first year of China’s 14 th Five-Year Plan,which focuses on strategic emerging industries of new-energy vehicles.If the enterprises of Chinese lithium industry want to grow rapidly,it has become the key means to expand the scale through mergers and acquisitions.The transnational mergers and acquisitions of Chinese enterprises are more and more taking on the characteristics of "snake swallowed elephant","snake swallowed elephant" type mergers and acquisitions often need a lot of capital as economic support.Therefore,it is of great significance to study how to carry out the "snake swallowed elephant" mergers and acquisitions and what effect the "snake swallowed elephant" mergers and acquisitions produces.First of all,this paper introduces the background and significance of the topic selection,at the same time to mergers and acquisitions and the "snake swallow elephant" mergers and acquisitions related research.Second,it analyzes the background of mergers and acquisitions,and further analyzes the motivation of this mergers and acquisitions.Then analyze the effects of this merger and acquisition from the three aspects of finance,non-finance and the market.Finally,the risk generated by the mergers and acquisitions was analyzed.The study has found the motivation is mainly policies,resources,enhanced competitiveness,and achieve synergistic effects.The short-term performance was not optimistic.It brings risks of valuation,debt repayment and financing.But Tianqi Lithium relied on a large amount of high-quality lithium resources and high-production capacity to become the leading enterprise.So enterprises should adopt reasonable ways to avoid financial risks.And in the process of company development,enterprises should seize the opportunity of industrial chain development and form the core competitiveness of enterprises,promote better development of enterprises.