Research On The Synergy Effect Of Cross-border Mergers And Acquisitions Under The Background Of The "Belt And Road" Initiativ

Since the Belt and Road Initiative was put forward in 2013,the constant updating and improvement of infrastructure has built a bridge for energy cooperation between China and countries along the routes.Due to the energy reserves of China is low,in order to meet the development requirements,cross-border mergers and acquisitions have become an important way of international energy cooperation.At the same time,in recent years,the Chinese government has introduced a series of policies related to energy conservation,emission reduction and environmental protection,making the proportion of clean energy such as natural gas in Chinese energy consumption gradually rise.In order to adapt to the development trend of the Times,Chinese energy industry is seeking a more efficient,environmentally friendly and diversified development mode.Energy enterprises are also facing new challenges in the future development process.With the increasingly mature layout of the Belt and Road,Chinese energy enterprises are gradually accelerating their pace of "going out".In this context,this paper selects United Energy Group,a large upstream energy enterprise in Hong Kong that actively responds to the Belt and Road Initiative,as the research object,and conducts a longitudinal study on the synergies of its’ cross-border mergers and acquisitions.Firstly,on the basis of understanding the general situation of both sides of the merger and acquisition,resource-based theory,economies of scale theory and the multi-management theory are used to analyze the motivation of cross-border merger and acquisition,and sort out the transaction process.Secondly,the method of subsection study was adopted.The event study method is used to study the expected market effect of M&A before the completion of M&A.After the completion of M&A,the synergistic effect of resource integration is classified and comprehensively evaluated.In the comprehensive evaluation,force field analysis method and entropy catastrophe progression method are used respectively to carry out qualitative and quantitative evaluation.Finally,suggestions for improvement are put forward in view of the shortcomings of synergistic effect.It is found that the market expectation effect before the completion of the merger is obvious only in a short time before and after the announcement,and investors’ optimistic attitude towards the merger is not obvious in the longer term.In the process of resource integration after the completion of merger and acquisition,the three kinds of synergistic effects all play a certain positive role,but there is room for improvement.In terms of the overall synergy effect,the driving force of the merger is greater than the restraining force.Although the overall synergy effect is not obvious within two years after the completion of the merger,it shows advantages in the third year.In order to give full play to the synergistic effect of cross-border mergers and acquisitions,this paper puts forward suggestions from four aspects:(1)Increase technological investment to realize the systematization of energy management;(2)Control stock and flow to realize efficient asset operation;(3)Improve the capital structure to realize the rationalization of financial risks;(4)Dynamic overall management to maximize the overall effect.