Research On M&A To Enhance International Competitiveness Of China's Steel Industry

The steel industry development history shows that M&A is one of the effective methods toenhance the international competitiveness of steel industry. The market concentration of Chinesesteel industry is low, the space distribution is uneven, the product structure is unreasonable, theproduction elements of supply and demand is imbalanced, the demand of steel is diversified.Allof these factors have become the necessity to go on M&A of China's steel industry. M&Abecomes a trend for China's steel enterprises today.This article analyses the necessity of the M&A, then further analyses the positive effect ofM&A . By the diamond model as the foundation, this article finds a transmittable mechanismabout M&A to international competitiveness through setting up an index system.From atheoretical perspective, it analyzes the influence about M&A to international competitive. On theother hand, the paper analyses the apparent negative effects which brings by M&A.Onlyconductting some effective integration on these negative effects, the internationalcompetitiveness of our country's steel industry will improve. Taking HeBei iron&steelgroup(HBIS)which has effective integration as the object for empirical research, from theenterprise environment, product structure and enterprise scale and the benefit these three aspectsto go on analysis. Comparing the changes of international competitiveness index before and afterthe action of M&A, this text finds that M&A is helpful for improving enterprise operatingenvironment, it can enhance the enterprise asset scale and economic benefits, to a certain extent,it improves the competitive status of enterprises in international market.Finally, according to the research results, this artical puts forward some advice from theenterprise and nation,in order that M&A can increase the international competitiveness ofChina's steel industry effectively.