MERGERS AND ACQUISITIONS IN CHINA'S DAIRY INDUSTRY: AN ANALYSIS OF MENGNIU DAIRY AND MILK GROUND

Abstract

The Chinese dairy industry is experiencing a transformation and upgrading in response to changing market consumption demands. As a result, mergers and acquisitions (M&A) have become an increasingly popular way for companies to expand and improve their competitiveness. This article analyzes the performance of Mengniu Dairy's M&A of Milk Ground using financial analysis and event analysis methods. The article builds a performance evaluation system for M&A, covering financial analysis, operation, customers and employees, and assesses the effectiveness of the M&A by Mengniu Dairy from these four perspectives. The results show that Mengniu Dairy has achieved a positive strategic integration effect, which has improved its development ability and competitiveness in the long term. However, the chosen M&A mode has worsened its solvency in the short term. It is noteworthy that Mengniu Dairy has not taken effective measures for internal resource adjustment. The article emphasizes the importance of formulating reasonable merger and acquisition plans according to financial conditions and development strategies, refining the market, updating business strategies, and avoiding financial difficulties. The article also highlights the need to strengthen asset management and internal resource integration to improve M&A performance. The findings of this study provide valuable insights for companies in the dairy industry that are considering or currently undergoing mergers and acquisitions.