Study On The Merger Performance Of State-owned Iron And Steel Enterprises

Iron and steel industry is the raw material industry that provides the most basic guarantee for China's economic construction.It is closely related to many industries such as capital construction,machinery manufacturing,transportation and real estate.After more than ten years of rapid development,the iron and steel industry,on the one hand,is faced with overcapacity,low industrial concentration,serious product homogenization and other problems,and on the other hand,is affected by the country frequently issued industrial policies for strategic adjustment.In the face of severe industry competition pressure,steel enterprises only through large-scale mergers and acquisitions,to integrate resources,expand the scale of competitive enterprises,improve industrial concentration.As China's economic development has entered the new normal,government policies encourage the steel industry to implement restructuring to achieve economies of scale,among which state-owned steel enterprises play an important role in mergers and acquisitions.On the one hand,merger and reorganization can achieve a leap in the size of steel enterprises in a short period of time,but on the other hand,it may also bring the result of "integration and non-conformity",unable to achieve the expected benefits.Based on this,this paper adopts the methods of literature research,case analysis and comparative analysis to study the performance of China's iron and steel enterprises' mergers and reorganizations.The content of this paper is as follows: the first chapter is the introduction,which introduces the background,research significance and research ideas of this paper,and reviews some domestic and foreign literatures on stock-for-stock merger and acquisition performance.The second chapter introduces the concepts and theories related to the content of this paper,including the concept of stock-for-stock merger,the motivation theory of enterprise merger and the evaluation method of enterprise merger performance.The third chapter is the analysis of the development status of the steel industry and the situation of mergers and acquisitions.Starting from the development status of the steel industry,this chapter sorts out the situation of mergers and acquisitions of China's steel enterprises in recent years.On this basis,it summarizes the characteristics and existing problems of mergers and acquisitions of China's steel enterprises.The fourth chapter is the specific case of the merger of baosteel and wuhan iron and steel co.,LTD.It introduces the overall situation of the merger from three aspects: the reasons of the case selection,the introduction of the two sides of the merger,the reasons of the merger,and the specific situation of the merger.The fifth chapter is the performance analysis of baosteel's stock-for-stock merger with wuhan iron and steel group co.,LTD.Firstly,it analyzes the influence of merger type and merger payment method on merger performance,and then carries out a specific analysis of the performance after the merger.Due to the merger of the two sides are all controlled by the state-owned assets supervision and administration of actual large state-owned enterprises,the merger will reflect a certain country,may be more combined with national industrial policies and the union of industry development strategy,in addition to the analysis of market performance and financial performance,this section also combined with the particularity of state-owned enterprises merge the non-financial performance is analyzed.The short-term market performance of the merger is analyzed by using the event study method.The financial index method is used to analyze the impact of the merger on baosteel's profitability,operating ability,debt paying ability and growth ability.On this basis,the comprehensive financial performance of the merger is analyzed with the dupont analysis method.The economic value added method was used to evaluate the value effect of the merger on baosteel.Finally,the non-financial performance of the merger is analyzed by qualitative analysis.The sixth chapter is the last chapter of this paper.Through the above analysis,the conclusions and enlightenment of the research are obtained.The deficiencies in the research process are summarized and the future research is prospected.Through the analysis of the case of baosteel exchanging shares to absorb the merger of wuhan iron and steel group,it is found that the merger of baosteel and wuhan iron and steel group,as a large state-owned iron and steel enterprise,has high efficiency,short time,improved financial indicators in the short term,good non-financial performance,and the benefits of reorganization and integration have been shown.This merger provides important practical guidance and reference for other steel enterprises and state-owned enterprises in other industries to carry out merger and reorganization.