Synergistic Analysis Of Mergers And Acquisitions In Steel Companies

Iron and steel industry is the first industry in our country,and it is also one of the traditional industries in our country.Since the reform and opening up,the state vigorously develop production,the market demand for steel soared,the steel industry has become a huge industry,and many capitals came into the iron and steel industry,the establishment of the scale of the iron and steel plant.In recent years,due to the impact of slowing trend,the price of imported iron ore increased by factors such as the development of the real estate industry,iron and steel industry into a decline in demand,rising costs and other difficulties,the iron and steel enterprises to seek a way out through a variety of ways,including using the method of merger to achieve the overall efficiency of the expansion and competitiveness.M&A is divided into horizontal mergers,vertical and mixed mergers and acquisitions,mergers and acquisitions due to different purposes,but in essence,it is in order to get rid of the existing difficulties or in order to obtain better development of the future,if the merger is completed successfully,it will achieve the two companies after the merger efficiency is bigger than the two companies before the merger development alone the benefits and also achieve a synergistic effect.But not all mergers and acquisitions can achieve synergies,so it is particularly important for the realization of the merger and acquisition and how to achieve synergies.According to the results of previous studies,synergy can be divided into management synergy,management synergy and financial synergy.Although there are many studies on the synergistic effect of M&A theory at home and abroad,but in the case of merger guidelines for single industry merger synergies is still not much,so this paper from the point of view of synergetic effect theory to a definition and classification,comparison of enterprise and industry development trend in the before and after the merger and acquisition through the financial analysis,the synergistic effect of Laiwu Steel and Jinan Iron and Steel Group merger to determine,thus puts forward the suggestions for the easy to appear in the process of mergers and acquisitions have occurred in the problem of iron and steel industry.To some extent,it can solve the problems in the process of M&A activities of China's iron and steel enterprises,and has certain significance to the sustainable and stable development of China's iron and steel industry.