A-share mergers and acquisitions and reorganizations have exceeded 1,900 state-owned enterprises' mergers and acquisitions
Reporter Meng Ke
The M&A and restructuring of the A-share market will be active in 2021.
According to statistics from Flushing iFinD, reporters from Securities Daily show that from the date of the first announcement and excluding transaction failure cases, as of October 24 this year, there have been 1945 company mergers and acquisitions in the A-share market, an increase of 19 from the 1,640 in the same period last year. %.
As far as the nature of the enterprise is concerned, 640 participants were state-controlled listed companies, accounting for 33%.
Everbright Bank analyst Zhou Maohua told a reporter from the Securities Daily that as state-owned enterprise mixed reform and registration reform continue to advance, listed companies will be driven to pay more attention to the quality of company development and market competitiveness.
At the same time, industry concentration will further increase, listed companies will pay more attention to the integration of upstream and downstream industries, and the number, scale and degree of standardization of mergers and acquisitions in the future are expected to further increase.
There were 13 tens of billions of mergers and acquisitions during the year
In recent years, the China Securities Regulatory Commission has continued to deepen the market-oriented reform of mergers and acquisitions and reorganization, and implemented precise supervision of chaos such as "flickering" and "three high-level" reorganizations, effectively improving the market environment for mergers and acquisitions and reorganization.
The chairman of the China Securities Regulatory Commission, Yi Huiman, recently stated at the 2021 Financial Street Forum that in the past five years, the transaction value of mergers and acquisitions of listed companies has reached 11.2 trillion yuan, and China has become the world's second largest M&A market.
Among the above-mentioned 1945 company mergers and acquisitions, from the perspective of progress, 675 have been completed and 1,270 are in progress.
Zhou Maohua said that there are many reasons for the active performance of mergers and acquisitions this year. One is the deepening reform of the capital market.
In recent years, China has deepened the reform of the capital market. The legal system of the capital market has been continuously improved and supervision has been strengthened. The market has become more standardized and transparent, and the efficiency of corporate mergers and acquisitions has been significantly improved. The second is to promote the high-quality development of the company.
A series of solid reform policies have been issued one after another, which has profoundly changed the expectations of market entities. More and more listed companies have improved market competitiveness through market mergers and acquisitions to revitalize their stocks, improve operating efficiency, and accelerate the pace of transformation; third, changes in the economic environment .
Affected by business cycle fluctuations and changes in the operating environment, some companies are facing pressures such as performance decline and goodwill impairment, and focus more on their main businesses. Some companies choose to group together for warmth and focus on the integration of upstream and downstream industrial chains to improve operating efficiency.
In terms of the nature of the company, there were 640 cases involving state-controlled listed companies, accounting for 33% of the total number of mergers and acquisitions during the year.
Among them, there were 165 cases involving state-owned state-owned holding listed companies, 262 cases involving provincial state-owned holding listed companies, 206 cases involving prefectural and municipal state-owned holding listed companies, and 7 cases involving other state-owned listed companies.
It is worth noting that there have been 13 mergers and acquisitions of more than 10 billion yuan during the year, of which 10 state-controlled listed companies participated.
For example: On September 30, Xugong Machinery officially disclosed the reorganization report of the merger and absorption of Xugong Co., Ltd. The final transaction price of the latter's 100% equity (including 38.11% of Xugong Machinery equity) was 38.686 billion yuan.
"Year-to-date, state-controlled listed companies accounted for more than 30% of mergers and acquisitions, reflecting that the capital market plays an active role in serving the reform of state-owned enterprises, helping to promote state-controlled listed companies to improve corporate governance, improve operating efficiency, and benefit the state-owned capital industry. Layout and structure optimization.” Zhou Maohua said.
Focus on technological innovation industry
From an industry perspective, among the 1945 company mergers and acquisitions that occurred during the year, the number of mergers and acquisitions in the five major industries, including medical biology, machinery and equipment, basic chemicals, electronics, and computers, ranked first, with 219, 170, 162, and 137 respectively. And 117, accounting for 41% of the total.
He Nanye, a special researcher of the Suning Financial Research Institute, said in an interview with a reporter from the Securities Daily that the above five industries have become high-risk areas for mergers and acquisitions and reorganizations. There are two main factors. First, these industries are industries that are supported by the state. , Which is also a key industry supported by the capital market, is easier to pass in regulatory review; second, these industries are more active and companies are more diversified; third, the high valuation of these industries allows listed companies to easily achieve through share-based payment tools Purpose of M&A.
Chen Li, chief economist and research director of Chuancai Securities, told the "Securities Daily" reporter that under the background of the registration system, it is necessary to strictly supervise mergers and acquisitions and reorganizations. Mergers and acquisitions use the method of "drawing a big pie" to purchase unqualified and non-compliant companies at a premium, and illegally seek personal gain; on the other hand, they must severely crack down on inside information and illegal activities. The purpose of the registration system is to ensure that all information is disclosed. transparent.
On the whole, mergers and acquisitions under the registration system should encourage companies to conduct mergers and acquisitions around the upstream and downstream industrial chains and horizontally related businesses, with the goal of becoming bigger and stronger, achieving economies of scale, and boosting the high-quality development of enterprises.
Chen Li predicts that state-owned enterprises will increase mergers and acquisitions in the future.
The optimization of the layout of state-owned capital will have greater significance for serving the country's strategic goals, better adapting to and promoting high-quality development, building a high-standard market economy system, and building a new development pattern.
Therefore, the future mergers and acquisitions of state-owned enterprises will be in line with the general direction of national key development, encourage mergers and acquisitions in some important strategic areas, accelerate the integration of the industrial chain, and occupy the commanding heights of future technological development.
(Securities Daily)