Study On The Effect Of China Resources Pharmaceutical Group Limited Acquisition Of Jiangzhong Pharmaceutical Co.,Ltd

From the start of the pharmaceutical industry to the present,the competition between pharmaceutical enterprises is becoming more and more fierce.In order to promote their own continuous development,many pharmaceutical enterprises began to embark on the road of mergers and acquisitions.In 2019,China Resources Pharmaceutical Group Limited,through the acquisition of Jiangzhong Pharmaceutical Co.,LTD,adjusted the industrial structure,expanded the scale of the company,and improved the competitive strength of the company.Although China Resources Pharmaceutical Group Limited’s merger and acquisition of Jiangzhong Pharmaceutical Co.,LTD has been completed,the effect of this merger and acquisition activity is still worth our study.So this paper based on industry background analysis and five force model analysis,using case study method,event research method and comparative analysis of China Resources Pharmaceutical Group Limited river pharmaceutical event study,analyzes the acquisition of the main business development,financial situation,development strategy,the process of mergers and acquisitions and motivation,and then the short-term performance,the synergistic effect of mergers and acquisitions and economic value before and after mergers and acquisitions analysis.Finally,we put forward the countermeasures and suggestions to improve the merger and acquisition effect of China Resources Pharmaceutical Group Limited,hoping to provide reference for the M & A of other enterprises in the same industry.After the study,The paper draws the following conclusions: China Resources Pharmaceutical Group Limited mainly to seize market share,Improve competitiveness and play synergies;Studying the short-term performance of mergers & acquisitions,The short-term performance of China Resources Pharmaceutical Group Limited’s acquisition of Jiangzhong Pharmaceutical Co.,LTD is not ideal,Did not bring good market reaction and shareholder value to China Resources Pharmaceutical Group Limited;Studying the synergies of mergers and acquisitions,China Resources Pharmaceutical Group Limited acquired a certain synergistic effect,Including operation,management,and financial synergies;Studying the economic added value before and after merger and acquisition,The economic added value of China Resources Pharmaceutical Group Limited increased rapidly after the acquisition of Jiangzhong Pharmaceutical Co.,LTD,Enterprise value has been added in value;Finally,it puts forward suggestions and enlightenment to improve the M & A effect of China Resources Pharmaceutical Group Limited,Enterprises need to choose the right target enterprises before the merger and acquisition,And conduct the reasonable evaluation of the target enterprises and choose the appropriate merger and acquisition opportunity,In the process of merger and acquisition,we need to do a good job of information confidentiality and flexible choice of payment methods,After the merger and acquisition,we should pay attention to strategic integration,resource integration,management coordination and risk prevention and control.