General comments: the total amount of mergers and acquisitions decreased significantly, but the number increased

Looking back at the total value of mergers and acquisitions in the past decade, it peaked in 2016, declined slightly in 2017, and fell by 10.81% to 1.97 trillion in 2018. (the buyer of M & An is a domestic enterprise and the seller is a domestic or foreign enterprise)

However, from the point of view of the number of mergers and acquisitions, there is basically an upward trend, especially in the past two years, the number has nearly doubled compared with the same period last year, mainly from mergers and acquisitions with less than 30% equity. In other words, when the total amount does not change much, the average amount of equity investment per unit should be significantly reduced.

II. Sorting out the Top Ten huge mergers and acquisitions

1、Geely Holdings90Billion US dollars acquisitionDaimlerMake another move in the internationalization strategy

Merger and acquisition partyGeely holding group

The acquired party9.69% equity of Daimler

Merger and acquisition amount: 9 billion US dollars

Industry: automobile manufacturing

[event Review]On February 24, 2018, Geely Holdings Group bought a stake in Daimler for $9 billion and held a 9.69% stake. Geely Holdings has become Daimler's largest long-term shareholder. Geely became the highest-selling independent passenger car brand in China a year ago because of its car sales.

[review of mergers and acquisitions]2018 is also the first year for Geely to spend the seven-year itch after holding hands with Volvo. Some netizens joked that in the future, whether you buy Volvo or Mercedes-Benz, don't you just want a "Geely"? So far, Geely has wholly acquired Volvo, acquired 8.2% of the Volvo Group as the largest shareholder, acquired Proton and Lutes, acquired Terrafugia Flying Motor, acquired 9.69% of Daimler as the largest shareholder, and upgraded automobile R & D / production technology from the high / medium / low market, sports car market, and technology companies. If the acquisition can completely open the door to deep cooperation with Daimler, it will be a crucial step for Geely to grow into a successful global car company.

2BABA's $9.5 billion acquisition of ele.me: the largest cash acquisition in the history of the Internet

Merger and acquisition party: BABA

The acquired party: ele.me

Merger and acquisition amount: 9.5 billion US dollars

Industry: Internet

[event Review]On April 2, BABA officially announced that the largest cash acquisition in the history of the Chinese Internet-the US $9.5 billion cash acquisition of ele.me. After the transaction is completed, ele.me will integrate into BABA's ecology. and further get BABA's full support in the new retail infrastructure, products, technology, organization and other aspects, continue to maintain an independent brand and independent operation. Meanwhile, Zhang Xuhao, founder of ele.me, resigned from his post as CEO of ele.me and handed it over to Wang lei, former CEO of Alibaba Health Information Technology.

[M & An Analysis]BABA's investment and mergers and acquisitions in recent years have been constantly expanding the new retail territory, after spending tens of billions of dollars to buy shares in large department stores, including Xinhuadu, Lianhua supermarket, Gaoxin Retail, Box Ma Xiansheng, etc., but if BABA wants to expand his territory, he must extend his tentacles to more subdivided scenes, and ele.me is a key link in the field of new retail takeout. After BABA's acquisition, Ele.me and word of mouth can be integrated into BABA's new retail territory to form a closed loop, and ele.me has also obtained more adequate financial protection. This acquisition is a win-win situation for both parties.

3Meituan-Dianping acquired part of mobike's equity stake with 3.7 billion US dollars: the last kilometer of the layout.

Merger and acquisition partyMeituan comments

The acquired party: mobike

Merger and acquisition amount: 3.7 billion US dollars

Industry: Internet

[event Review]Late on the night of April 3, 2018, mobike shareholders will approve Meituan's acquisition plan. Meituan buys mobike for US $2.7 billion, including 65% cash and 35% Meituan shares. In addition, Meituan assumes mobike's debt (between US $5 and US $1 billion), and the management team stays in office. From Meituan made a takeover offer to the end of delivery, the whole process was completed within two weeks.

[M & An Analysis]There are two important capital operations in Meituan's history, one is the merger of Meituan in October 2015, and the other is the acquisition of mobike. The difference is that one is a merger of the same type, and the other is a complementary merger. It is a big leap for the company to make a transaction from the perspective of homogenization and elimination of competition to being willing to pay such a high price to acquire and turn bikes into part of Meituan's service ability. By the end of 2018, too many changes have taken place in the entire industry. The number of people queuing for refund deposits in ofo has exceeded 10 million. It is not clear whether shared bikes will be reshuffled or whether the business model has been falsified.

4、Tianqi lithium industry40.6$100 million acquisition of 23.77% stake in SQM: contentionThe discourse right of Lithium Resources

Merger and acquisition partyTianqi Lithium Industry

The acquired party:SQM

Merger and acquisition amount：40.6100 million US dollars

Industry:New energy sources

[event Review]In may 2018, Tianqi lithium announced that it planned to buy a 23.77% stake in SQM for $4.066 billion. Due to the large transaction volume, Tianqi Lithium Industry plans to raise the above money through bank loans, self-funded funds and other self-raised funds. On December 3 (Chile local time), the company sold 62.56 million Class A shares of SQM (23.77% of the total issued shares of SQM) through floor trading on the Santiago Stock Exchange in Chile.

[M & An Analysis]It is well known that because of the popularity of domestic new energy vehicles, the upstream lithium battery industry is booming, and lithium is its key raw material. Tianqi Lithium is the second largest lithium producer in the world and the largest lithium producer in Asia in terms of annual sales in 2017. Previously, Tianqi Lithium Industry through the acquisition of the world's largest lithium ore supplier Australia Tellyson, currently, it has a 51% interest in Terlison. Since then, Tianqi Lithium Industry has set its sights on SQM, the world's second largest lithium supplier, acquiring lithium resources owned by SQM. The company said that the merger and acquisition is based on the long-term, considering the broad development prospects of new energy in the future, is a measure of layout in advance, in order to compete for the voice of lithium resources.

5, Sham Chi Wan246.5100 million acquisition of China Merchants Port: a new case of market capitalization management of central enterprises

Merger and acquisition partySham Chi Wan

The acquired partyChina Merchants Port

Merger and acquisition amount: 24.65 billion RMB

Industry:Harbour and services

[event Review]On the evening of June 20, Shenzhen Chiwan A (000022.SZ) announced that it plans to issue 1.149 billion shares to China Merchants Investment and Development Co., Ltd (CMID) at 21.46 yuan per share for 24.65 billion yuan to acquire CMID's 38.72% shares in China Merchants Port (00144.HK). In addition, China Merchants Hong Kong and Shenzhen Chiwan A signed a unanimous action agreement that the voting rights in respect of the 23% equity interest in China Merchants Port entrusted to be exercised by China Merchants Hong Kong should be consistent with that of Shenzhen Chiwan An in the voting of the general meeting of China Merchants Port shareholders. At the same time, Shenzhen Chiwan A plans to raise no more than 4 billion yuan of matching funds for the Han-Hong Kong supporting renovation project and the second phase of the starfish wharf renovation project.

[M & An Analysis]The core business of Shenzhen Chiwan An is port loading and unloading services for containers and bulk carcass. it is mainly engaged in 6 container berths and 12 bulk cargo berths in Shenzhen Chiwan Port area and Dongguan Ma Chung Port area. The port of China Merchants Bureau is mainly engaged in port loading and unloading, warehousing, transportation and other supporting services for containers and groceries. Mainly engaged in a total of 30 container berths, 16 bulk cargo berths, 26 multi-function berths and 4 other berths, such as Shenzhen West Port, Shantou Port, Shunde Port, Xiamen Zhangzhou Port, Sri Lanka Colombo Port and Han Port, Togo Lome Port, Brazil Paranagua Port, etc.

The inter-industry competition between Shenzhen Chiwan An and China Merchants Port began in 2012. After the completion of this transaction, the high-quality port assets of China Merchants Group will be injected into Shenzhen Chiwan A, which will realize the framework of domestic platform control and offshore platform control. Shenzhen Chiwan A will integrate Shenzhen port resources to a certain extent through the superior geographical advantages of China Merchants Port, based on Shenzhen's home port, and actively respond to the national strategy of building "Guangdong-Hong Kong-Macau Greater Bay Area". At the same time, relying on China Merchants Port's rich experience in port operation at home and abroad, we will actively expand overseas port, district and city projects, and gradually build a "Belt and Road Initiative" global cooperation and development platform with international vision and expansion ability. no, no, no.

6、Yingfeng environment152.5100 million RMB acquisition of Zhonglian Environment: the layout of the whole industrial chain of the environmental protection industry

Merger and acquisition partyYingfeng environment

The acquired party:Zhonglian environment

Merger and acquisition amount：152.5100 million RMB

Industry:Environmental protection equipment

[event Review]On the evening of July 17, Yingfeng Environment (000967) released the report on issuing shares, Purchasing assets and related transactions (draft). It is proposed to purchase 100% stake in Changsha Zoomlion Heavy Industry Science and Technology Environmental Industry Co., Ltd. (Zoomlion Environment) by issuing shares to Ningbo Yingfeng and other shareholders. The trading price of the 100% stake in Zoomlion Environment is 15.25 billion yuan, and the average trading price of Yingfeng Environmental shares is 7.64 yuan per share in the 120 trading days before the pricing benchmark. Based on this, the number of shares in this issue is about 2.003 billion shares.

[M & An Analysis]Yingfeng Group may not be familiar with it, but its chairman, legal representative and largest shareholder is he Jianfeng, the son of he Xiangjian, chairman of Midea, a famous household appliance giant in China. He Jianfeng said, "this time the group paid 7.4 billion to acquire a 51% controlling stake in Zoomlion Heavy Industry Science and Technology Environmental Industry Company, which can be said to be the largest investment since Yingfeng Holdings started." Through this acquisition, the group will have the most complete environmental protection industry cluster in China, forming a comprehensive platform of the whole industry chain covering environmental protection equipment, environmental monitoring, environmental governance and environmental operation services. ".

7China Literature acquired Xinli Media with 15.5 billion RMB:Tencent's「Pan-cultural entertainment」Overall Arrangement

Merger and acquisition party：Xinli Media

The acquired party:Zhonglian environment

Merger and acquisition amount：155100 million RMB

Industry:Movie entertainment

[event Review]On the evening of Aug. 13, online literature platform company China Literature (00772.HK) announced that it planned to buy 100% stake in Xinli Media for no more than 15.5 billion yuan. Tencent, a major shareholder of China Literature and the second largest shareholder of Xinli Media, played the role of a seller in the deal. Of the total consideration of 15.5 billion yuan, China Literature will pay 5.29 billion yuan to Tencent, which will be settled by shares, while the seller's shareholding by the management of Xinli Media will ask for 10.21 billion yuan, which will be settled with 50% cash and 50% shares. The seller of the management of Xinli Media includes Cao Huayi, founder of Xinli Media and the former management of the company. After the deal is completed, Cao Huayi, founder of Xinli Media, will hold 2.24% of China Literature through his company, other shareholders of Xinli Media will hold 1.45% of China Literature, and Tencent's stake in China Literature will further increase to 54.34%.

[M & An Analysis]Xinli Media, founded in 2007, is mainly engaged in the production and distribution of TV dramas, online dramas and movies, including "my first half of my Life", "White Deer Plain", "Legend of the Concubine", "remaining Sins" and so on. Participation in films include "Wukong", "lover", "shy iron fist" and "Charlotte annoyance". However, Xinli Media, which has unlimited potential, has been plagued by IPO problems and lack of money. China Literature is a large-scale IP gestation platform, and Xinli Media is involved in the joint development. The TV series "Breaking the Sky" and "Qingyu year" to be broadcast this year are all born in China Literature's Big IP ("Breaking the Sky" is serialized on the Chinese website of the starting point of Shouwen). China Literature wholly-owned acquisition of Xinli Media, for their own content IP to find a good exit for development, at the same time, Xinli Media has also become a fresh revenue entrance for China Literature. And the person behind this deal is Tencent. On the battlefield of the big cultural and entertainment field, Tencent's "pan-cultural and entertainment" layout gradually forms a confrontation with BABA's big cultural and entertainment group.

8、Peace137.7100 million RMB to buy Huaxia Happiness19.7%Shares

Merger and acquisition partyChinaPeace

The acquired party:Huaxia happiness

Merger and acquisition amount：137.7100 million RMB

Industry:Insurance, real estate

[event Review]Huaxia Holdings and Ping an assets signed the share transfer Agreement (hereinafter referred to as the "transfer Agreement") on July 10, 2018, stipulating that Huaxia Holdings shall transfer 582124502 shares of the company to Ping an Capital Management by means of agreement transfer, accounting for 19.70% of the total share capital of the company. The transfer price of the underlying shares is determined at 23.655 yuan per share, with a total transfer price of 13.77 billion yuan.

[M & An Analysis]Ma Mingzhe's "Ping an empire" is getting bigger and bigger. Ping An Insurance invested 10 billion yuan in Huaxia Happiness this time. According to Ping An Insurance, Huaxia Happiness's current valuation is relatively attractive, while the company's dividend distribution remains at a stable level. Investors can get relatively stable cash flow. Ping an advocates value investment, while Huaxia Happiness is China's leading industrial new city operator, with a business layout around the core city circle, Ping an is optimistic about its long-term development potential.

Ping an has a large real estate territory and is already the second largest shareholder in Country Garden Holdings, Xuhui and Huaxia Happiness, all of which are first-tier TOP10 real estate companies in the real estate industry. In addition to these large real estate companies, Ping An Insurance holds shares in Yunnan Baiyao and other high-quality pharmaceutical companies, and these enterprises all have something in common. They all belong to enterprises with leading business levels in the industry, have stable and sustainable performance, and have high dividends for a long time. Ping An Insurance also has a low valuation for these enterprises when they buy.

9Evergrande Health wholly acquired Hong Kong Shiying: Xu Jiayin is going to build a car?

Merger and acquisition partyEvergrande health

The acquired partyHong Kong Shiying

Merger and acquisition amount: HK $6.746 billion + US $1.2 billion

Industry:Insurance, car

【Event review]: Evergrande Health announced on June 25 that Evergrande Group acquired 100% shares in Hong Kong Shiying Company for HK $6.746 billion and indirectly acquired a 45% stake in Smart King Company, making it the largest shareholder of the company. Smart King wholly owns "Faraday Future USA" and "Faraday Future Hong Kong". According to the investment plan, Hong Kong Shiying will invest another US $1.2 billion in Smart King in the next two years, that is, US $600 million by the end of 2019 and 2020 respectively. According to the announcement, Hong Kong Shiying's only asset is its investment in Smart King, so the future investment of US $1.2 billion will be provided by Evergrande. As a result, Evergrande Health is equivalent to acquiring a 45 per cent stake in FF for $2.06 billion (13.5 billion yuan).

[review of mergers and acquisitions]FF was founded in May 2014 and has a core R & D team in the United States. as of June 2018, it employs nearly 1400 people worldwide, of whom more than 1000 are cutting-edge technical professionals in new energy vehicles, computer algorithms, Internet, information systems, AI and other fields. At present, FF has filed nearly 1500 patent applications in China and the United States, and has issued more than 380 patents in China and the United States. At the beginning of the year, Evergrande proposed to actively expand high-tech industries, focusing on the distribution of new energy, artificial intelligence, robots and other fields. The entry into FF marks a substantial step in Evergrande's foray into the high-tech field, and the previously financially troubled FF will speed up its efforts to achieve mass production after it has received support from Evergrande.

But it has to be mentioned that as the former chairman of Letv, who fed many domestic media in 2017, and now Faraday Future CEO Jia Yueting, Jia Yueting, made headlines again in 2018, and twice. Jia Yueting has applied to the Hong Kong Arbitration Centre for arbitration to tear up all agreements between the two sides, according to an announcement issued by Evergrande Health (HK.0708) on October 7. The announcement also pointed out that Jia Yueting used up Evergrande's $800 million in half a year and now failed to ask Evergrande to pay another $700 million in advance. This is mainly because Xu Jiayin also did enough work before investing in Faraday. In the agreement signed between Evergrande and Faraday, in order to avoid repeating Sun Hongbin's mistake, Evergrande did not invest the money at once, but chose to pay by installments. It is agreed to pay $800 million by the end of 2018, $600 million in 2019 and $600 million in 2020. If Jia Yueting fails to deliver FF's first vehicles in the first quarter of 2019, there will be a default. Jia Yueting will lose control of Smart King. But as long as Jia Yueting can deliver FF vehicles on time in accordance with the terms of the agreement, Evergrande will continue to invest in the next two investments.

10、BABA, rookie13.8Invest 100 million US dollars in ZTO Express

Merger and acquisition party：Rookie net

The acquired party:ZTO Express

Merger and acquisition amount：13.8100 million US dollars

Industry:Logistics industry

[event Review]On the evening of May 29th, BABA Group announced that it had reached a strategic investment agreement with Cainiao Network and ZTO Express. BABA and Cainiao invested 1.38 billion US dollars and held about 10 per cent of ZTO Express.

[M & An Analysis]In order to cooperate with BABA's new retail strategy, Cainiao has comprehensively launched a new logistics strategy in the fields of new technology, new retail and globalization, and the cooperation with express companies has also entered a new period of opportunity. BABA and Cainiao bought a stake in ZTO Express with a strategy of US $1.38 billion, which is an important layout in the new logistics track to serve BABA's new retail strategy. According to the consensus reached, the two sides will carry out all-round cooperation on express delivery, terminal, warehouse distribution, cross-border logistics and other logistics services for new retail, and further enhance the level of digitalization, on-line and intelligence in intelligent logistics.

Although the capital is tight in 2018, experienced trade frictions, frequent policy risks, financial industry malaise and so on, there are still many wonderful M & A cases in the capital market.It is easy to find that the top 10 M & A cases in 2018 are mainly concentrated in Internet entertainment, new energy vehicles, real estate and insurance.In addition, the above-mentioned companies are basically listed at home and abroad, so we can see that listed companies do have more active and financial advantages in the capital market. In addition, the amount of mergers and acquisitions in 2018, which was first mentioned, fell by more than 10% year-on-year, more or less because of macroeconomic influence. Wang Xing, president of Meituan, said: "I heard a joke: 2019 may be the worst year in the past decade, but it will be the best year in the next decade." Whether next year will be worse or better, whether the bosses can buy at will, and whether there are new dark horse areas to attract hot money, we look forward to it together.