China North Railway Case Study

991 Words4 Pages
Author (s): Derek Yim is a teaching fellow of the School of Accounting and Finance at the Hong Kong Polytechnic University. He obtained a PhD in Finance and MBA in Finance from Schulich School of Business, York University, Toronto, Canada. He is also a Chartered Financial Analyst (CFA Institute). His concern knowledge areas include Corporate Finance, Global Finance, Mergers & Acquisitions, Finance and Accounting for Design Business, Accounting for Managers, Business Environment in China, Financial Statement Analysis. His current research focus on corporate finance and financial markets. He also offers executive training courses with various professional bodies. Synopsis of the article: China South Railway (CSR) and China North Railway…show more content…
Key Learning: The following points found unique and interesting after reading the case study Why the merger / joint venture took place? The reasons for it are as…show more content…
Its rival CSR submitted the offer at a 50% lower price. Finally, CSR won the bidding at a price of $1.21m per unit, which almost equaled the cost. To stop the hostile competition between two companies, the merger was put on the table to develop synergy and to act in unison to have more fruitful results. 4. Recent performance and Business strategy: The merger results in continuity of progress and breakthroughs in achieving the annual objectives targets of increase revenue and profits with minimum administrative and miscellaneous expenses. From above points we learnt the following: • Executive management took right decisions at the right moment. • Correct planning. • Executive understanding of the case and proceed with the merger accordingly. • The behavior and structure of the organization need to support the team leader and other members of the team so they can communicate cross functionally for the growth of an organization and same we observe in the case also. • Believing that by sincere hard works and efforts we can attain our goals and objectives. Application: Merger from Pakistan Financial Landscape There are several examples in Pakistan where companies joint hands with each other to become a strong company having well maintained financial structure as

More about China North Railway Case Study

Open Document