A Study On The Motivation And Effect Of Merger And Reorganization Of State-owned Iron And Steel Enterprises

Successful mergers and acquisitions can not only help enterprises accelerate expansion,improve market competitiveness but also promote the optimization and upgrading of industrial structure.As the basic industry of the national economy,the steel industry plays a very important role in China's economic construction.However,China's current steel industry has overcapacity,low industry concentration,and fierce competition.In order to solve the above problems,the Ministry of Industry and Information Technology issued the "Steel Industry Adjustment Policy" in 2015 to encourage strong alliances between steel companies and promote the healthy development of the industry through mergers and acquisitions.Against this background,in September 2016,Baoshan Iron & Steel.issued the draft of the merger and absorption report,which started the battle of Baowu's joint reorganization.In February 2017,the merger of Baoshan Iron & Steel and Wuhan Iron & Steel was completed.This paper selects the case of Baoshan Iron & Steel's absorption and merger of Wuhan Iron & Steel as the research object.Taking Baoshan Iron & Steel's merger of Wuhan Iron & Steel as the starting point,it analyzes whether this powerful combination creates value for the enterprise,whether it guides the healthy development of the steel industry,and will merge with future state-owned steel enterprises What is the significance of restructuring.The research in this paper is different from the previous single-angle analysis using empirical research,but it is a multi-angle analysis of research problems through case studies.The merger of Baowu opened a prelude to the strong union of state-owned iron and steel enterprises.Therefore,this article selected the case of Baoshan Iron & Steel's share swap to absorb and merge the shares of Wuhan Iron and Steel as the research object.The high profitability enhances its own competitiveness,and the government's will and related industrial policies have played a big role in promoting it.This article also analyzes the integration work of Baowu after the merger and finds that Baowu has effectively integrated business processes,organizational structure and corporate culture from a strategic perspective.These integration work provide guarantees for Baowu to achieve good performance.Next,the article comprehensively evaluated Baowu's merger performance.The market performance was analyzed through the event research method,and it was found that the merger event increased the excess return rate of the twocompanies in the short term,making the cumulative excess return rate of WISCO shares from negative to positive,and was favored by the market;the long-term Financial performance,found that through the merger,Baoshan Iron & Steel's profitability,debt solvency and asset management and utilization efficiency have been improved,and played a synergistic effect;at the same time,combined with the particularity of state-owned enterprises,this paper also changes the situation through market competitiveness,technological innovation development,The optimization of industrial layout and the implementation of national policies to evaluate non-financial performance.The conclusion of this paper shows that the Baowu merger has achieved the effect of "1 + 1> 2".Through effective integration methods,Baoshan Iron & Steel has improved the competitiveness of enterprises,laid the world's leading position in automotive sheet and silicon steel products,completed the task of reducing production capacity,promoted the optimization and transformation of China's steel industry,and opened up state-owned The new chapter of the powerful alliance of enterprises further verifies the correctness of the state's policy of encouraging the strong alliance of steel enterprises,and provides a reference for future mergers and acquisitions of state-owned steel enterprises.