Case Study On Merger And Acquisition Of BBMG With JIDD

Due to the fall in economic growth,market demand and other factors,the building materials industry slowdown,reduced benefits,increased differentiation,cement industry is excess capacity,structure,competition and other issues.2015 national clinker capacity utilization for 67%,serious excess capacity,cement and clinker prices hit a record low of 32.97 billion yuan total profits across the industry,the national cement enterprises overall loss of 34%.Cement industry in Beijing-Tianjin-Hebei region as the country’s "hardest hit by losses" in 2015,capacity utilization was only 40%in Beijing-Tianj in-Hebei area,cement enterprises in North China a rare industry-wide loss,losses amounted to 4.21 billion yuan.For promote supply side troupes,and pressure reduction excess capacity,ordered advance joint restructuring,improved enterprise development environment,enhanced enterprise innovation capacity,State and about sector introduced has support policy advance capacity serious excess Enterprise merger restructuring.BBMG and JIDD are the two largest cement companies,and their market share are close in Beijing-Tianjin-Hebei region.Because of overcapacity,the two companies compete fiercely in Beijing-Tianjin-Hebei.Under the background of national integration of the Beijing-Tianjin-Hebei region,the central supply side reform,and the prevention and control of atmospheric pollution,and the new normal station of economic,in the Policy guidance of a series of controlling and resolving cement excess capacity,with the government’s support and guidance in Beijing and Hebei province in 2016,BBMG cement acquired Jidong Cement through capital operation after negotiations,and finally the two cement group achieved Mergers and acquisitions.Because the merger and acquisition case of BBMG and JIDD is typical,so it has a strong demonstration effect.Taking the merger and acquisition case of BBMG and JIDD as the research object,the paper studies the motivation,and shows the course,and analyses the mode,and evaluates the effect,and then finally the author offers its thinking and proposes the enterprise development strategy after the merger and acquisition Combined with the situation faced after the merger and the advantages and disadvantages of enterprises.By studying the case,Basing on the theory and practice of cement industry,the paper provides the ideas for other cement companies to enhance the core competitiveness and sustainable development,and it supports a method for regional Governments in turn to adjust structure and promote the development process in the cracked cement overcapacity problems in the region,and provides experiences and programs,and takes reference to the healthy and sustainable development of cement industry and suggestions also.