China 's Iron And Steel Enterprise M & A And Its Performance Analysis

Chinese steel corporations expand scale, close disqualified production capacity and improve product structure through merger and acquisition (M&A), in order to solve the problems such as unreasonable industry organization, surplus homogeneous products and low industrialconcentration. The paper reviews the theory of M&A reason and performance, analyzes Chinese steel corporations’M&A reason and performance, and proposes the suggestions to improve M&A performance through the empirical analysis on Baosteel Group Corporation’s M&A, and has theory and practice of reference value to those corporations’sustainable development.Chapter1introduces the research significance of Chinese steel corporations’M&A and its performance, analyzes Chinese steel corporations’M&A reason and performance through combining theory and practice, and points out the method, framework, innovation and deficiency of the research.Chapter2explains M&A’s meaning, type, summarizes its characteristics of overseas steel corporations by analyzing M&A development of steel corporations home and abroad, points out the problems exist in Chinese steel corporations’M&A, and introducing M&A process by taking Baosteel Group Corporation as the example.Chapter3introduces M&A motivation theory, points out the way of improving steel corporations’M&A performance by analyzing the main reason of the M&A, and carries on the theoretical analysis of the reason and performance of Baosteel Group’s M&A.Chapter4analyzes the changes in the financial data of Baosteel Group and Shaoguan Steel Group before and after M&A, and carries on empirical analysis on Baosteel Group’s M&A performance through principal component analysis and the synthetically evaluation model.Chapter5summarizes the paper, proposes the suggestion on how to improve Chinese steel corporations’M&A performance.Through summarizing the development characteristics of overseas steel corporations and the development status and performance of Chinese steel corporations’M&A, the paper points out that government’s intervention on M&A is the key factor that influences Chinese steel corporations’M&A. Hence, the performance of Chinese steel corporations’M&A can be improved by following marketization and developing related agencies. The paper takes Baosteel Group as the case, through financial analysis, finds that obvious negative effect may appear in short-term after M&A, and the situation will be improved as the integration goes further, and forms synergy. The positive effect brings from M&A cannot offset the negative effect causes by industry life cycle and economic environment in the short-term.