Reform economics analysis: development characteristic and function of wave of economic ownership change
Enterprise reorganization, as a highly developed product of market economy and an effective means of enterprise management, has promoted the economic development of various countries to a great extent.In the process of economic development, the expansion of enterprise activities and the growth of enterprises are always accompanied by mergers and reorganization.In developed countries, almost any large enterprises rely on mergers and acquisitions to grow up quickly, few large enterprises are completely self-development.At present, the world economy is in a new period of steady growth, worldwide enterprise restructuring and structural adjustment in an all-round way, merger and acquisition activities, like a “popular wind”, blowing through every corner of the world.Since 1995, in order to meet the needs of competition and management, international enterprises have begun large-scale mergers and acquisitions among enterprises.According to the statistics released by the United States Securities information Company: in 1995, 17200 mergers and acquisitions took place globally, involving assets reorganization of 866 billion DOLLARS;In 1996, 22,729 enterprises were merged, involving assets reorganization worth US $1.14 trillion.In 1997, 21,000 mergers and acquisitions took place, involving 1.4 trillion US dollars in assets reorganization.The characteristics of global enterprise merger tide (1) developed countries merge and combine more.In the global merger wave, the relatively developed western industrial countries are particularly prominent, especially the United States, the wave of enterprise merger wave, and mergers and acquisitions between large enterprises increased significantly, the scale is getting bigger and bigger.In 1995, the combined assets of American companies amounted to 519 billion dollars, followed by 658.8 billion dollars in 1996 and 823 billion dollars in 1997.In 1997, the world famous American Boeing aircraft company merged with McDonnell Douglas aircraft Company, thus making Boeing company more scale, efficiency, monopoly and competitive change.(2) Mergers are mainly concentrated in the tertiary industry.Throughout the merger trend of international enterprises, most of them occur in securities, banking, transportation, communications, insurance, retail and other service fields.Take the case of the United States as an example, enterprises can no longer raise prices and increase supply to gain more profits, and can only expand business scope, scale and cost to achieve the purpose of improving operating efficiency and expanding the market.In 1997, there were at least 10 large mergers and acquisitions in the US securities industry.Morgan Stanley securities bought Witt for $11 billion in the first half of the year;Travelers group with 9.3 billion DOLLARS to achieve the acquisition of Solomon Securities Company, formed the second largest securities company in the United States, business strength significantly enhanced;On November 10, 1997, WorldCom acquired the second largest microwave communications company in the United States for $37 billion, setting a precedent for small business.On April 13, 1998, the American national bank and bank of America mergers of new bank of America, became the first big bank, involving totaling $59.3 billion, its total assets is as high as $570 billion, the branch number will reach 4800, ATM machine 15000 units, the business scope expanded to the 22 states and 39 countries and around the worldArea, becoming the rare “super bank” in the history of American banks.(3) Transnational mergers are on the rise.From Europe to America, cross-border mergers are on the rise.In 1997 alone, there were more than 100 cross-border mergers and acquisitions by EU enterprises, with assets worth tens of billions of US dollars.In the past few years the EU has gobbled up many eastern European companies and more than 1,500 American ones.At the same time, hundreds of European companies were absorbed by American ones in mid-1997.The wave of mergers and acquisitions of international enterprises is increasing.Although the occurrence of enterprise merger or giant merger phenomenon is not a new phenomenon, but the trend of today’s development is far from a simple repetition of similar merger activities in the past.Transnational marriage between enterprises, big fish eat small fish, especially the merger of strong, to snack big, small fish are willing to be eaten, become a dazzling landscape of world economic life.Through this landscape line, we can see the mentality of the acquirer, the acquirer and the acquirer.Here are eight types of international mergers and acquisitions.(1) Combination of strong countries.The merger of enterprises from the “strong and weak” union to the strong and strong union development.In the initial wave of mergers and acquisitions of enterprises, the combination of strong and weak.With the development of economy and the intensification of competition in the global market, “strong” alliances emerge one after another and major cases occur one after another.Annexation has been by the traditional impression of the “big fish eat small fish” evolution for “fish eat big fish”.In December 1996, Boeing acquired McDonnell Douglas with 13.3 billion DOLLARS, which was called “the merger of the century”.British Telecom merged MCL Telecom, the second largest long-distance telephone company in the United States, with 22 billion dollars to form the world’s first transatlantic telephone company.Bank of Tokyo, which is good at international financial business, and Mitsubishi Bank, which has strong strength in China, announced the merger, forming complementary advantages and becoming the world’s largest super bank.Two of Switzerland’s big three banks, UBS and UBS, merged to form the world’s second-biggest bank and biggest asset manager.The goal of this mega-merger is not domestic, but global, to achieve absolute dominance in the world market.(2) Brand acquisition.Today’s market competition is shifting from commodity competition to commodity brand competition.In today’s world market, the same product, even if the quality, design and technical content are the same, but if the brand is different, the image in the hearts of consumers will be very different, the value is very different, which is the attraction of famous brand.The status of enterprise famous brand is hard won, not normal operators can be prefixed with it, to obtain this kind of name, have to “arty”, after being merged to enjoy.This is why Coca Cola has become a trademark used by beverage companies in many countries.Adidas in September 1997, Germany announced that it will be $1.4 billion control salomon ice-skating sports products company in France, a new company named adidas salomon, will occupy the global market share of more than 6 billion mark, after the United States a famous brand of “Nike” 13.82 billion mark, but in Europe in the first place.In the brand merger, the merger and acquisition of the same and related industries with famous products and trademarks and technology patents of enterprises is also a remarkable phenomenon.For example, America’s K.L. Roberts bought the world’s leading tobacco company, RJR Nabisco, for a huge sum of 25 billion dollars because it liked many of the latter’s famous brands.Such as “Winston”, “More” and “Camel” cigarettes and “Di Wu Monty” canned fruit and so on;Louis Vultton, a 133-year-old French manufacturer of luxury goods, acquired Veuveclquote group, which owns famous brands, and merged with Hennessy, which owns world famous brands, to form LVMH, the world s largest luxury goods group.Perrier bought Nestle of Switzerland, the world’s biggest food firm for nearly a century, for $2.7 billion, because it took aim at the Swiss firm’s brand name, Nestle.In order to obtain brand-name products, some European and American companies complement each other’s advantages in the same industry or internalize the market through mergers and acquisitions, so as to maintain competitive advantages and develop brand advantages at the same time to establish a broader sales network.(3) Complementary mergers.For small and medium-sized enterprises, mergers and acquisitions can form a scale advantage.Since each enterprise has its own characteristics, its own flagship products and its own advantages, it will form a “complementary merger” by taking advantage of each other’s strengths according to its own characteristics.Small companies in the US, Germany, the Netherlands and Japan, each with its own expertise in chemistry, are forming alliances.Complementary mergers also allow companies to conduct research and development together and generate sales of hundreds of millions of dollars or more.The research and development of bulk products by enterprises is a risky investment with large investment and long cycle, which is difficult for a single enterprise. Through merger, it can concentrate technical forces to jointly tackle problems, share risks, develop and share technology.The initiative in such a merger is not entirely determined by its size. Relatively small companies can also show strength because they have special advantages in some areas.On March 1, 1997, Krupp iron and Steel company of Germany announced that it would merge with thyssen Iron and Steel Company of Germany, which is stronger than itself. This fully illustrates a certain advantage of small and medium-sized enterprises and can be regarded as a vivid example that small fish can eat big fish.Big companies are willing to be eaten by small companies because of their growth advantages.The rise of some of America’s new information companies, such as Microsoft, Netscape and Intel, which started out small but rose rapidly to fortune magazine, is also something big companies cannot afford to take into account.(4) Trade merger.In the market competition, the merger of the same trade gives enterprises a broad space for capital operation, can achieve scale efficiency, to achieve the goal of smaller capital input to obtain more output, which is the common pursuit of modern enterprises.Through the merger of the same trade, enterprises can easily form a complete industrial system, from development to production, and then to sales and after-sales service, forming an independent system, which is the basis for enterprises to form a scale and create a famous brand.In recent years, the global chemical, paper, building materials and other materials industry tend to merge and unite among peers, hoping to expand scale and improve international competitiveness.Bayer, Hearst and BASF of Germany, the three biggest chemical companies of late, and DuPont and Dow chemical of the United States, each achieved turnover of more than $20 billion through mergers.After the merger, Mitsubishi Chemical Became the first Japanese chemical company with a turnover of more than 10 billion dollars.In paper, International Paper of the United States, the world’s largest, bought Spoon Board for $3.5 billion.The American paper duopoly, Baileys and Stout Paper, also announced a merger at the end of 1997.The alliance between Shinoji and Honshu aims to reclaim the title of Japan’s largest paper company from Nippon Paper.Japan’s Sanwa Shutter industry with 51.7 billion yen to acquire the largest us shutter production enterprises, trying to get rid of the domestic demand dependent enterprise management mode, to speed up the pace of world-class building materials enterprises.(5) Take the opportunity to merge.As international investment becomes more active and investment policies of various countries are further liberalized, mergers and acquisitions carried out by enterprises are closely related to business expansion and development.After Mexico’s financial crisis in 1994, foreign capital fled, but foreign direct investment recovered quickly.In particular, in recent years, Latin American enterprises have been promoted in a large scale in privatization, and Latin American enterprises have again become new targets for European and American investors to acquire and merge. This is a possible merger taking advantage of the falling price factor after the devaluation of currencies in South American countries to obtain enterprise assets income and further expand the potential of emerging markets.Since the financial crisis occurred in Southeast Asia in July 1997, some countries in the region depreciated their currencies, and some investors also showed a strategic vision of “seeing business opportunities from the crisis”.Due to the devaluation of the currency in this region, wages and land prices have declined greatly, and some enterprises have fallen into difficulties in capital consolidation. Therefore, multinational companies have also strengthened the acquisition and merger of some enterprises in difficulties.(6) Technology merger.As the cycle of transforming scientific and technological achievements into commodities is greatly shortened, the competition among enterprises is more manifested in the competition in technology.The main purpose of the active acquisition of strategic companies in technology is to accelerate the technology annexation.South Korea’s Samsung Aerospace invested in a controlling stake in Japan’s United Optics to gain access to advanced optical technology.Hyundai Group acquired ATCIS for 340 million dollars in order to acquire its patented technology.The acquisition has revolutionized the non-memory semiconductor sector of Hyundai Electronics in a short period of time.IBM has acquired lotUS, a well-known software company, for $3.2 billion in order to make new advances in the software market, especially in network technology.South Korea’s LG paid $350 million to take control of Zenith Electronics of the United States, giving it access to important new high-performance television and multimedia technologies, creating synergies and enhancing market competitiveness.(7) Defensive annexation.In today’s world market, enterprises are in fierce competition.The stage of competition is global, and the domestic market of each country is more connected with the international market. Without the international market, the domestic market will be difficult to protect.As countries are involved in the trend of open development to varying degrees, there are more and more and more powerful competitors in the world market, and the ways of competition are complex and changeable.Enterprises to survive and develop, only rely on their own strength, single-handed, it is difficult to occupy a favorable position in the strong.After the merger of the strong, the emergence of defensive mergers and acquisitions, it enables the merger and acquisition in some aspects of the situation can become a corner, strengthen themselves, consolidate and expand the position.On April 1, 1996, American Southwestern Bell Telecom company announced the acquisition of Pacific Telephone System Group with 17 billion DOLLARS;On November 3 of the same year, British Telecom announced that it was merging MCI Communications of the United States. The combined annual sales of the two companies increased to 40 billion DOLLARS and the profit was 4.7 billion dollars. Among them, there was the motivation to fight the strong, and even to compete with the strong.(8) Mergers based on strong.Enterprises with strong strength have relatively large operation scale, technology development and research strength, and good market relations.Smaller companies can ride the wave of economies of scale, technology patents and markets through alliances or mergers with stronger players.This kind of merger occurs in horizontal division of labor, that is, enterprises research and development and business is the same product or parts of the same product, with the same technological level between each other.Conclusion Most of the merged enterprises are relatively small in overall scale and have their own advantages in some aspects.And some larger enterprises may also want to form an alliance with the strong, for example, In May 1996, Japan’s Mazda Was merged by ford Motor Company of the United States;In November Coty, America’s third-largest toy company, was acquired by Mattel, the biggest;In December, NEXT was acquired by Apple Computer.In April 1997, A California network television company was acquired by Microsoft for 425 million dollars.