Study on the Motivation and Performance of Energy Enterprises' Mergers and Acquisitions under the Background of Dual Carbon--Taking Tianshan Cement's Merger and Acquisition of Zhonglian Cement as an Example

Abstract

General Secretary Xi Jinping pointed out in the report of the Twentieth National Congress that realizing carbon peak and carbon neutrality is a major strategic decision made by integrating the domestic and international situations, and a solemn commitment to build a community of human destiny. Based on the background of energy transformation, many energy companies have joined the M&A army for the purpose of improving operation and management level and expanding market share. This project takes the second largest energy-consuming cement industry as the research object, and analyzes the case of Tianshan Cement's merger and acquisition of Zhonglian Cement to further study the impact of M&A and restructuring on the financial performance of energy companies. Based on the background of "double carbon" and theories such as synergy effect theory and green development, the project firstly analyzes the internal and external environment of M&A and restructuring of energy enterprises, and explains the significance of M&A on the strategic restructuring and professional integration of enterprises. Secondly, SWOT analysis is applied to systematically analyze the motivation of Tianshan Cement's green M&A with Zoomlion Cement from the dimensions of external environment and internal conditions. Immediately after that, for the case of Tianshan Cement's acquisition of Zhonglian Cement, the event study method and relevant financial indicators are used to examine Tianshan Cement's financial performance before and after the merger and acquisition; at the same time, the environmental and social performance is used to reflect the non-economic performance, so as to comprehensively judge the effect of the merger and acquisition. Finally, based on the above research, we provide policy recommendations for energy companies to implement M&A and reorganization and effectively improve M&A performance. This project will help enrich the literature on M&A of energy enterprises and provide suggestions for the implementation of scientific and efficient M&A.