Research On Motivation And Performance Analysis Of Enterprises’ Cross-Border Mergers And Acquisitions Based On Shuanghui M&A Smithfield

According to national policies and market macro environment,a large number of enterprises are guided by the company’s developmental demand,and they chose to make crss-border M&A to satisfy the needs of resource integration,technology aequisition and profile raising.But even if the economic recovery is hindered by a long-term epidemic,the M&A boom in global companies is still as always.The global merger transaction volume increased by 63%higher than before,the M&A activities in China attracts more attention.China merger transaction volume increased by 79%,which mainly include medical industry annd TMT industry.It can be seen with economic globalization and social progress;China’s enterprise multinational mergers and acquisition activities are overwhelming.But crossborder mergers not only consider the environment of their own countries,but also face the political and legal risks of other countries.So,it is of practical significance to analyze the question whether the M&A is successful and the performance after the merger.The paper takes the representative case of Shuanghui M&A Smithfield in the United States as an example to analyze.It is based on the clearing and analysis of literature review and started with the introduction on the basic situation of the two enterprises to research the motivation and performance.It is first to make a further analysis of motivation based on the merger’s relevant concept and theories.Moreover,based on the motivation of Shuanghui M&A Smithfield.this paper adopts three kinds of the appropriate indicator to evaluate the performance of Shuanghui to verify if the motivation comes true.And The reason is studied that why Shunghui can gain the positive influence from three stages:the preparation for merger,the implemenation and the integration stage.Finally.It can be concluded three points:Firstly,the reasons that Shuunghui chose SFD as its aim ar to promote value of stock,strengthen profitability,full up industrial chain and raise brand effect;Secondly,It is explained that the M&A events have the value of Shuanghui’s stock enhanced and produce a positive finacial effect;and Shuanghui sets up the slaughter industry and processing bases,the acquisition has had a positive impact on Shuanghui’s marrket share and brand image,and Shuanghui marches the high-end domestic market and overseas market;Thirdly,the reasons why Shuanghui succeed are also three points:Shuanghui can clear its motivation and choose suitable aim,and it can select strong partners to help it.Moreover,it can integrate Shuanghui and Smithfield in system.Overall,the merger has been a success for Shuanghui and Smithfield.At last this paper based on the case of Shuanghui merger Smithfield,coming up with the following enlightenments:the first is to select proper aim;the second is to choose suitabte mode of payment:the third is to make a systematic and effective integration;the fourth is to evade political risks.which aims at exploring a new way to the integration of China’s food industry and bringing beneficial inspiration to Chinese enterprises’M&A in the future.