| In recent years,the rise of "new retail" model has impacted both traditional retail industry and e-commerce industry.In order to cope with this situation,the relevant enterprises are looking for ways to change the status quo,thinking about how to enhance the strength to meet the needs of the market.In this context,M&A has become an effective means.In order to adjust the business structure,improve the sales ability,to obtain a higher market position,the "new retail" industry acquisition case is also increasing.Taking Suning’s acquisition of Carrefour China as an example,this paper analyzes the motivation of Suning’s acquisition of Carrefour China and the impact of the acquisition on Suning’s performance.Through non-financial indicators,financial indicators and market performance to analyze the change of corporate performance before and after M&A.This paper is divided into six parts.The first part is the introduction,which introduces the background and significance of this paper,summarizes domestic and foreign literature,and finally summarizes the research ideas and methods.The second part introduces related concepts and theories.The third part introduces the status quo of the "new retail" industry,analyzes the background of the merger and acquisition,introduces the situation of both parties and the merger and acquisition process.The fourth part uses SWTO analysis method to analyze the advantages,disadvantages,opportunities and threats of Suning,based on which the motivation of this merger and acquisition is obtained.The fifth part uses financial index method,event study method and principal component analysis method to analyze the changes of operating performance before and after M&A,and then makes a comprehensive evaluation of the performance of this M&A event.The sixth part summarizes the conclusions of the study,and puts forward some suggestions on m&a under the "new retail" mode.The study shows that Suning specifically chose Carrefour China as the target of merger and acquisition.After the merger and acquisition,Suning expanded its market share,absorbed carrefour’s physical stores and logistics and transportation capacity,and made up for the shortcomings of offline retail channels.From the perspective of financial indicators,the merger and acquisition event has improved the operating capacity of Suning.The operating capacity of Suning has been slightly ahead of the industry level from lagging behind the industry average before the merger.However,m&a events do not significantly improve the solvency and profitability.In the three years before and after the merger,suning’s debt paying ability has been in a downward trend,and further increased with the industry average level.Profitability did rise in the early stage of m&a,but the epidemic in 2020 stopped the upward trend.Observing the average level of the industry,the epidemic had a negative impact on the whole retail industry,but Suning showed a more obvious effect.The performance of growth ability is complicated: its main business has a good development trend,but the total assets show a downward trend due to the company’s expansion decision mistakes.From the perspective of market reaction,the merger and acquisition event generated positive excess return during the announcement period,the stock price increased,the excess return rate increased,and both investors and shareholders benefited.However,according to the long-term market reaction,the cumulative excess return has been declining and is above 0 only in the first month after the merger.This shows that the merger and acquisition from the long-term point of view and did not obtain positive benefits.M&a performance fell short of expectations.After analyzing suning’s policies and operating conditions in recent years,we found that suning Tesco’s investment was too decentralized and spent a large amount of money on "diversified" investment.However,after the outbreak of the epidemic,the sales capacity and profitability declined significantly,and the disadvantages brought about by excessive investment in the early stage were completely exposed,resulting in insufficient capital flow,investment exceeding return,and the risks faced by the company increased significantly.Finally,the paper puts forward some suggestions from the perspective of mode selection and post-merger resource integration. |
