Research On The Motivation And Performance Of Fosun Pharmaceutical’s Merger And Acquisition Of Gland Pharma Under The The Belt And Road Initiative

Along with the gradual globalization of the international economy,more and more economic and trade exchanges take place.As an important form of international economic exchanges,M&A occurs frequently in the world.Since the "One Belt,One Road" initiative was put forward,the infrastructure construction and preferential policies have been more perfect,and more and more enterprises have chosen to "go out" to seek advanced technologies,unique resources and broader markets,which has made our country the second country in the world to invest and merge abroad.Although mergers and acquisitions can bring more development opportunities,but the merger and acquisition itself and after the integration operation is not easy,which led to many enterprises after mergers and acquisitions.Pharmaceutical industry is our country’s main industry,but for a long time,the scale and level of our country’s pharmaceutical industry is not high,and the impact on the international market is not good.Taking Fosun Pharmaceutical as the object,this paper analyzes the motivation and business performance of Gland Pharma,an Indian pharmaceutical company located in countries along the "Belt and Road",in the hope of providing reference for the mergers and acquisitions of countries along the "Belt and Road"This paper first introduces the writing background,significance,purpose and relevant literature theory at home and abroad,and takes this as the theoretical basis of the article.Then,it briefly introduces the development status of the pharmaceutical industry and the merger and acquisition situation,reviews the process of Fosun Pharmaceutical’s merger and acquisition of Gland Pharma,and introduces the corporate situations of both parties in this case,thus elicits the motivation of the merger and acquisition.It believes that the merger and acquisition of Fosun Pharmaceutical is to obtain superior resources,expand a broader international market,and be guided by relevant policies.Then,we analyze the short-term and long-term performance of Fosun Pharmaceuticals by calculating the accumulative excess rate of return and economic added value of Fosun Pharmaceuticals.On this basis,we compare the economic added value with net profit and return on equity from the perspective of absolute and relative index,respectively,explore the changes in annual profits of Fosun Pharmaceuticals and the reasons for the difference in economic added value,and analyze whether the merger and acquisition achieve the original objectives.After analysis,this article summarizes the following key points: The transnational M&A of Fosun Pharmaceutical meets the needs of the strategic development of enterprises,namely,innovation,internationalization,integration and intelligentization;This M&A brings wealth income to shareholders and significantly improves business performance,but the advantages brought by Fosun Pharmaceutical do not last long.The introduction of various basic support policies under the background of the Belt and Road Initiative has effectively promoted enterprises’ participation in cross-border mergers and acquisitions.Different from traditional accounting indicators,the result of EVA calculation is more authentic,which guides enterprises to improve their performance by increasing net operating profit and reducing capital cost.Finally,based on the case company and reality,this paper puts forward some countermeasures for similar enterprises to carry out M&A activities.Before M&A,the enterprise should select the target enterprise carefully and reasonably,and pay close attention to the national policies and systems of both parties.After M&A,companies should pay interest in the integration of enterprise structure,talent technology and culture.