Motivation And Performance Analysis Of Private Enterprises’ Merger And Acquisition Of State-Owned Enterprises

In order to promote the deepening of mixed-ownership reform,the state has successively issued a number of mixed-ownership reform policies,including but not limited to "general competitive fields emphasize that there is no limit to the merger and reorganization of state-owned enterprises and private enterprises".Thus promoting the scope,depth and breadth of the mixed reform of state-owned enterprises in competitive fields,greatly stimulated the enthusiasm of private enterprises to merge state-owned enterprises.Mergers and acquisitions can not only enable private enterprises to obtain the core technologies and other scarce resources they want,but also enable state-owned enterprises to rely on the flexible operation system and production mode of private enterprises to stimulate their own operation vitality,and finally achieve a win-win effect.Semiconductor industry is a capital-intensive industry with high technical barriers and long investment cycle.Compared with endogenous growth,epitaxial M&A can help semiconductor companies acquire resources quickly.A total of 112 mergers and acquisitions were completed in the semiconductor industry from 2017 to 2021,among which there were many cases of private enterprises acquiring state-owned enterprises.In this paper,TCL Technology is selected to occupy Tianjin Zhonghuan Group as the research object.Zhonghuan Group is a comprehensive state-owned enterprise whose main business is semiconductor,photovoltaic and materials,and it will carry out group-level mixed reform in 2020.TCL Technology seized the opportunity and obtained 100% control of CMC Group to complete the final merger and acquisition,which is a typical case of private enterprises’ merger and acquisition of state-owned enterprises in the semiconductor industry.This paper uses case analysis method to analyze the motivation and performance of TCL Technology in Tianjin Central.By combing the literature on mergers and acquisitions and private enterprises’ mergers and acquisitions of state-owned enterprises,and combining the theories related to mergers and acquisitions,such as resource dependence theory and synergy theory,this case is analyzed.It is found that TCL Science and Technology chooses CMC Group as the target of mergers and acquisitions based on the reasons of obtaining external resources,optimizing industrial layout and vertically extending the industrial chain.Through the event study method and the selection of relevant financial and non-financial indicators to analyze the performance of this merger,it can be found that this merger helps TCL technology to obtain resources,extend the industrial chain,form a strong research and development capability,and play a positive role in improving business performance.It is further found that TCL Technology’s successful acquisition of CMC Group depends not only on its own comprehensive strength,but also on the promotion of state-owned investment platform.In the process of mergers and acquisitions of state-owned enterprises in the future,private enterprises need to combine their own development needs and choose appropriate targets,so as to realize the common development of private enterprises and state-owned capital.