Research on Synergistic Effect Evaluation of Merger and Acquisition of Cement Industry of China

Abstract

Under the background of serious overcapacity and supply-side structural reform in China's cement industry, mergers and acquisitions of cement enterprises are increasingly frequent, but little is known whether the synergistic effect after merger and reorganization is significant. This study is based on the merger and reorganization and synergistic effect theory, from the operating synergy, management and financial synergy effect of China cement enterprise merger synergy effect evaluation system, including three primary indicators, 12 secondary indicators, and 36 tertiary indicators, in mainland China. 15 cement listed companies were selected for empirical research, using weighted factor analysis of merger and reorganization synergy evaluation. The research results showed that significant business synergies; management synergies were significant in production management and organizational management; the overall performance of financial synergies was not significant. The conclusion of this study helped to enrich the synergistic effect theory of merger and reorganization, and also provided valuable enlightenment for the subsequent merger and reorganization practice of other cement enterprises.