Analysing the Financial Synergy Effect of Corporate Mergers and Acquisitions —Yili’s Acquisition of Ausnutria

Abstract

With the development of the economy, enterprises advance with the times, and mergers and acquisitions (M&A) is undoubtedly one of the important means for enterprises to integrate their own resources and explore new markets. The creation of synergies after M&A is usually the key to determine the success of M&A, and the creation of synergies can not only reduce the cost of capital of enterprises, but also improve the asset structure of enterprises. The paper analyses the case of Yili’s acquisition of Ausnutria to determine whether it generates better financial synergies and draws corresponding insights.