Research On The Motivation And Economic Consequences Of Wentai Technology’s "Snake Swallowing Elephant" Merger And Acquisition Of Anshi Group

Since the Belt and Road Initiative was proposed in 2013,the Chinese government has attached great importance to industrial upgrading and transformation and advocated enterprises to actively invest abroad.With the support of various government policies,various fields scramble to set off a merger boom.In 2016,China’s mergers and acquisitions exceeded $200 billion,and the overall trend of growth year by year.In 2018,the Chinese government deepened the guidance and drive of enterprise investment,promoted enterprises to focus on high-tech industries,and established a rational investment philosophy.As the most technologically advanced industry in the domestic electronic information manufacturing industry,the semiconductor industry has continuously improved its strategic position with the support of various national policies.With the development of discrete devices and integrated circuits in China,artificial intelligence technology will be a catalyst for the future development of the semiconductor industry.Based on this,the semiconductor industry will also develop into one of the most promising industries.At present,our country pays attention to the development of semiconductor industry.As the automobile industry accelerates in the direction of electrification,automation and connectivity,the share of electronic components in the automotive cost will further increase.Driven by electric vehicles,the market size of semiconductor is expected to usher in high growth.At the same time,the development of national strategies such as the Internet of Vehicles,the Internet of Things,5G and other emerging industries has also become an important driving force for the development of the semiconductor market.The development of these industries is likely to bring new business development opportunities to the semiconductor industry.And the domestic semiconductor industry can refer to and learn from foreign industry experience,improve our semiconductor independent research and development and innovation ability.In addition,in view of the suppression of our semiconductor industry by some countries,multinational mergers and acquisitions of leading foreign semiconductor companies will promote the development of our semiconductor industry,and can help our semiconductor industry better achieve the goal of "domestic substitution".This study adopts the largest merger and acquisition case in the history of China’s semiconductor industry,known as the "snake swallowing elephant" case of Wentai Technology’s merger and acquisition of Anshi Group.On the one hand,because this event is representative,it started in 2018,after the government further clarified the investment guidance for high-tech industry,and complied with the development trend.Secondly,the acquired Anshi Group is a relatively representative enterprise in the same industry,with its industrial layout covering multiple processes such as the design,processing,construction,and testing of semiconductor products,and a relatively complete operational structure.The analysis of the motivation and economic consequences of Wentai Technology’s "snake eating elephant" merger and acquisition of Anshi Group is more useful for future mergers and acquisitions in the semiconductor industry.In this paper,a combination of theoretical analysis and case study is adopted.This study is based on theoretical analysis and combined with case studies.On the basis of consulting and analyzing relevant literature,it provides an overview of the definition and classification of mergers and acquisitions,and the motivation of M&A,M&A performance and relevant theories of "snake swallowed elephant" M&A are discussed.The selected case--Wentai Technology’s "snake swallowed elephant" M&A of Anshi Group is briefly introduced.Secondly,it analyzes in detail the motivation of Wentai Technology’s "snake swallowing elephant" acquisition of Anshi Group.Again from the market effect,financial effect,synergistic effect of the specific analysis of the merger of Wentai Technology economic consequences;Finally,through case analysis,the conclusion and enlightenment of Wentai Technology’s "snake swallowing elephant" merger and acquisition of Anshi Group are summarized.The conclusions of this paper are as follows:(1)The short-term market effect is positive,and the corporate return rate is positive,which reflects that the capital market recognizes the M&A behavior;The long-term effect for the performance of Wen Tai technology stock amplification effect,stock price growth trend is obvious.(2)In terms of financial impact,mergers have a positive and stimulating effect on a company’s financial performance.(3)In terms of synergies,Wentai Technology has achieved technical synergy,management synergy and operation synergy.