Advances in Economics, Management and Political Sciences

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Proceedings of the 2nd International Conference on Financial Technology and Business Analysis

Series Vol. 56 , 01 December 2023


Open Access | Article

A Case Study of Bright Dairy’s Acquisition of Israel’s Tnuva Foods

Rui Zhong * 1
1 Finance, Shanghai University of Finance and Economics, Shanghai, China, 200010

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 56, 124-130
Published 01 December 2023. © 01 December 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Rui Zhong. A Case Study of Bright Dairy’s Acquisition of Israel’s Tnuva Foods. AEMPS (2023) Vol. 56: 124-130. DOI: 10.54254/2754-1169/56/20231078.

Abstract

In recent years, with the development of China’s economy and the policy encouragement of the Chinese government, more and more Chinese enterprises have participated in cross-border acquisitions and mergers and acquisitions. Studying the cases of cross-border mergers and acquisitions of large Chinese enterprises can help reveal the impact of similar mergers and acquisitions on the short-term stock price trend of enterprises and their financial indicators. This paper chooses Bright Dairy Food’s acquisition of Tnuva as the main body of the case study. By constructing the FAMA-French Three-Factor Model, this paper studies the short-term effect the acquisition activity exerted on the stock price of Bright Diary Food. By studying the financial indicators, this paper studies the influence of M&A activities on the profitability and debt-paying ability of Bright Dairy Food. The research shows that Bright Dairy’s decision to acquire Tnuva aroused widespread concern from shareholders, and shareholders were optimistic about this decision, so the abnormal return of Bright Dairy’s stock has increased in the short term. In addition, the acquisition of Tnuva has improved the profitability of Bright Dairy but reduced its debt-paying ability.

Keywords

Bright Dairy Food, merge and acquisition, abnormal return, profitability, debt-paying ability

References

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
ISBN (Print)
978-1-83558-159-9
ISBN (Online)
978-1-83558-160-5
Published Date
01 December 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/56/20231078
Copyright
01 December 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated