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On the enterprise merger and acquisition is the inevitable development of supply chain -- Taking gold enterprise as an example

Author: LiKangZuo LiGang From: www.yourpaper.net Posted: 2010-06-01 10:22:08 Read:

Abstract: This paper describes the gold industry at home and abroad in recent years the main M & A transactions, and the M & a motive for the theoretical analysis.As a resource-based industries, can obtain enough mineral resources determine the gold enterprise's core competitive ability, persistent directly affect the industry status and development.The gold industry in the world competition, mergers and acquisitions has become an important means to obtain resources.
Keywords: paper gold business; resources industry; merger and acquisition of

1 Introduction

In recent years, with the rapid development of world economy, the contradiction of supply and demand of raw materials have become increasingly prominent, all countries in the world to obtain strategic mineral resources for the characteristics of the M & a perfervid.Gold is a kind of important mineral resources, but also a kind of special commodity, dual attributes of both monetary and general merchandise, long respected.Very few gold resources in the global reserves, so very precious.According to the statistics of the United States Geological Survey Bureau, as of 2006 the world find gold reserves of 42000 tons, 90000 tons of reserves, resources are mainly concentrated in South Africa, Australia, Peru, Russia, the United States, China, Uzbekistan, Canada and other countries, resource scarcity is very prominent.

analysis of 2 gold industry characteristics and motivation
The scarcity of 2.1 gold resources to mergers and acquisitions to become the inevitable
With the development of technology and the progress of exploration, reserves may continue to rise, but the total reserves of gold on the earth are limited, even through the technology can improve the service life of mine, still inevitably go through exploration, development, senescence, scrap process, according to the statistics, the average life expectancy of mine enterprise resources about for 20 years.In addition, with the rising prices of mineral and exaltation of the human environmental protection consciousness, recovery and utilization of mineral resources and have been paid more and more attention, but mineral recovery growth after all cannot solve the problem of the increase consumption, mineral resources are available for human exploitation of the less.Based on this characteristic, gold enterprises to obtain sustainable development, we must overcome the mineral resources shortage, and constantly acquire new resources.
2.2 no difference with inherent requirement for the scale of the enterprise
That the theory of scale economy, the main motivation of M & A activity is to average cost.Through the realization of economies of scale, reduce costs, improve can achieve technological development capability and production efficiency of the.The scale effect of the average cost reduction can be achieved in two levels: one is specialized in the production of apple as everyone knows the technical economy, engineers rule; two are in the company, including research and development, administrative management, business management and financial aspects of the economic benefit.
2.3 vertical merger can effectively save the transaction cost and
Transaction cost theory believes that the enterprise merger and acquisition is the essence of enterprise organization instead of the market, in order to reduce the production and operation activities of transaction cost.The theory of asset specificity (i.e., an asset or production elements is most suitable for a particular configuration) interpretation of vertical merger.It is the measure of a certain degree of dependence on the market, asset specificity is high, the potential costs of market transaction is higher, the greater the possibility of vertical merger.When asset specificity to a certain extent, the potential costs will be market transactions to prevent enterprises continue to rely on the market, but its related parts of the interior, which occurred in vertical merger.The theory also used "micro capital market" interpretation of mixed M & A.Because the enterprise organization and management in some sectors unrelated business activities of lower cost than to organize these activities through the market cost, so the mixed M & A the Department of enterprise organization, so it can be much Department of enterprise organization is regarded as an internal micro capital market, through a unified strategy, so that capital can together to obtain the most effective use of.
2.4 through the Merger Synergies
Ansoff first proposed merger can produce synergistic effect.The effect of synergy, two enterprises through mergers and acquisitions to form a company, its overall effect should be combined, more than two independent enterprise benefit is 2 2> 4 effect.The synergistic effect that M & A is not a simple combination of two enterprises, it is implied by mergers and acquisitions to improve efficiency and bring all aspects of the enterprise and the resulting benefits.
Merger and acquisition of 3 international gold industry in recent years (1996 - 2005)
Over the past 10 years, the gold industry were occurred in 189 cases of M & A transactions, the total amount of 57l billion dollars, 2005 gold company M & A total amount of about 4 times in 2004, reaching $16500000000.The average turnover of US $302000000 per case.1996-2005 annual turnover of more than $1000000000 in M & A transactions a total of 12 cases, of which 3 transactions occurred in 2001, 2004 and 2005 respectively two times.Buyers are mainly NewmontMining, a total of 3 times the $7200000000; Gold Corp, two times the amount of the transaction amounted to $3890000000; a total Barrick Gold two trades for $12700000000, which in 2005 December on the Placer Dome acquisition, became the biggest gold acquisitions.In 2005 October BarrickGOld company had to offer 9200000000 dollars (cash and stock) acquisition of P1acerD0me, but until the company will offer increased to $10400000000, PlacerDome has finally agreed to the merger.After the merger the company (not including the following related transactions acquired by Goldcorp PlacerDome company's assets) 2005 will produce about 8400000 ounces, copper 168000 tons.The company has proven and predicted gold reserves of 149800000 ounces, copper reserves of 3000000 tons; in addition, there are 57300000 ounces of gold resources (including in Chile's CerroCasale gold and copper project).2005 annuity cash cost is 245 ~ 250 U. S. dollars / ounce.The company in four continents and 9 projects, with exploration area widely in L6 countries.
4 domestic gold industry in recent acquisitions of
Due to historical reasons, many domestic non-ferrous metal listing Corporation in the first listed company's assets, mainly by the smelter, and mine resources in general grasp of the group name, gold industry is no exception, such as the amount of resources under the control of gold and the Shandong gold market proportion of total resource group were very low.With the change of economic environment and the reform, the controlling shareholder group and listing Corporation interests tend to be consistent, which makes the group listing Corporation or listed as a whole will enhance mineral assets.But additional acquisition of the assets of the group or the overall market is often a convenient way to achieve rapid expansion of resources of listing Corporation.
The main conclusions of
The shortage of resources has seriously restricted the rapid development of the world economy, to seize resources has become an important means to promote sustainable economic development in the world.Have the resources to seize the opportunity, will have the initiative and the right to speak.
Since the reform and opening up, China's economic development has made remarkable achievements, economic actual strength increases significantly, to create the conditions for China to enter the international market.But at the same time, because of China's gold industry planned economy management system for a long time, formed the serious segmentation, gold resource repeated construction, small ore forming, lack of scale economy.China's gold enterprises should seize the opportunity, through M & a means to achieve powerful alliances, to enter the international market actively and steadily, control of mineral resources, to lay the foundation for the sustainable development of China's economy.
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