Research on the Problem of Interbank Competition of Subsidiaries in the Process of Merger and Acquisition and Integration of Companies

The Macduffie School, 01033, Granby, Massachusetts, United States

^* Corresponding author: ylyu2026@macduffie.org

Abstract

In the context of economic globalization, mergers and acquisitions (M&A) have become a key means for enterprises to expand markets, acquire resources and enhance competitiveness. Nevertheless, especially when large firms acquire small firms and involve the integration of subsidiaries, the problem of inter-firm competition has become an unavoidable challenge. The core task of this paper is to explore in depth the competition problem among subsidiaries during M&A integration and its impact on the success of integration. Through analysis, this paper reveals that subsidiary competition not only affects the reallocation of market share, but also leads to business overlap, resource waste and management complication. Taking Baowu Group as a case study, this paper thoroughly researches how it copes with and solves the subsidiary competition problem in M&A integration, and proposes effective strategies to manage peer competition. The conclusions of the study show that successful M&A integration requires optimizing resource allocation while avoiding internal competition in order to improve the competitiveness and market performance of the integrated enterprise.