Research On The Motivation And Performance Of COSCO SHIPPING Holdings' Acquisition Of OOC

In recent years,the development trend of ship scale in the shipping industry has become more and more prominent,and the top 20 global container freight enterprises have accelerated their alliance to solve the excess capacity,and this scale and alliance trend continues to deepen,leading to more and more fierce competition among major liner companies in terms of cost and expense,thus leading to the recovery of freight price in our market becomes more and more difficult.Therefore,the analysis of the M&A motivation and M&A performance study of COSCO Shipping Holdings’ M&A of OOCL has great reference value and significance for domestic head shipping enterprises and Belt and Road related enterprises to initiate M&A of multinational enterprises under the background of encouraging domestic enterprises to go global in China.The theoretical analysis combined with the case study is applied in this thesis.First,the theoretical part of this thesis composes the literature on corporate M&A motives and performance evaluation published by various experts and scholars at home and abroad.It describes the concepts of M&A and performance,analyzes the types of corporate M&A motivation,and the methods of M&A performance research.After an introduction to the background of M&A,it is followed by the company profiles of both parties and the M&A process.Next,this thesis analyzes the motivation of this M&A at three levels: national policy and industry level,and COSCO-HLC company level.This thesis uses the event study method to analyze the short-term market effects of the M&A by calculating the daily excess returns and cumulative excess returns during the event window period,and finds that the stock prices around the M&A event date reflect the positive market bullishness on the M&A.The financial performance before and after the M&A is analyzed by comparing the four indicators of profitability,solvency,operating capacity and growth capacity of the company before and after the M&A and the average value of 16 listed companies in the same industry;the scale of operation is realized through the layout along the "Belt and Road",the capacity dispatch is more reasonable,the emerging markets are explored,and the container business is developed.The non-financial performance before and after the M&A is analyzed by comparing the average value of listed companies along the "Belt and Road" route to achieve scale operation,rationalize capacity dispatch,develop emerging markets,enhance competitiveness of container business,and develop digital ecology of business.The thesis also analyzes the factors affecting the performance of COSCO Shipping’s M&A of OOCL in terms of corporate strategy,competitive advantage,operational synergy,management synergy and other theoretical and practical case studies.Finally,the thesis summarizes the case study of COSCO Shipping Holdings’ M&A of OOCL: obtaining synergy and competitive advantage are the main motivations for the M&A,the overall financial performance of the M&A increased except for the short-term decrease in debt servicing capacity,the efficiency of capital utilization could be improved,and the M&A made up for the shortcomings of information technology to realize the digital transformation of business.The following insights are drawn: to grasp the national policy tendency to initiate M&A,to clarify the motivation for M&A,to realize the motivation for M&A and subsequent integration,to pay attention to post-merger financial synergy and debt service risk,and to achieve win-win situation through comprehensive business synergy.