Research On The Comprehensive Performance Of Baosteel M&A Wisco From A Low Carbon Perspective

As China’s economy enters the "new normal",problems and contradictions accumulated in the high-speed development of the steel industry over the years begin to emerge,among which the problems of overcapacity and low industrial concentration are particularly prominent,and the operation of steel enterprises is facing severe challenges.At the same time,the development of a global low-carbon economy forces steel and other "three high" industries to adjust their industrial structure,implement strategic transformation and technological upgrading,and transition to a low-energy,low-pollution and low-emission mode to achieve sustainable development.In order to solve the above problems,Chinese steel enterprises have to carry out merger and reorganization,among which baosteel’s merger and acquisition of wisco is the representative case of steel industry consolidation in recent years.This paper selects this case as the research object,analyzes the motivation,process and effect of baosteel’s stock merger and acquisition,and probes into the changes of its financial,environmental,social and comprehensive performance after the merger,so as to provide reference for the merger and reorganization of other steel enterprises.Firstly,this paper explains the concepts of low-carbon economy、mergers and acquisitions performance and comprehensive performance of M&A from low-carbon perspective,and sorts out the sustainable development theory,M&A motivation theory and triple bottom line theory.After that,it introduces mergers and acquisitions background and the general situation of baosteel and wisco,sorts out and analyzes the motivation,the process and the effect of baosteel merged wisco.Then,according to the triple bottom line theory,relevant indicators are selected from the three levels of finance,environment and society to design the comprehensive performance indicator system of baosteel wisco merger and acquisition from the low-carbon perspective,and the index weight is determined based on the analytic hierarchy process.Then,relevant data of baosteel from 2014 to 2018 were sorted out to calculate and analyze the financial performance,environmental performance,social performance and comprehensive performance of baosteel before and after the merger.The study found that after the merger,baosteel’s shares have been fully integrated and optimized in resource allocation,achieving synergies in r&d,procurement,production,marketing and other aspects,and improving the overall competitiveness of the enterprise.At the same time,after the merger,the financial performance,environmental performance and social performance of baosteel shares have been on the rise,which promotes the improvement of comprehensive performance,and the overall strength of the enterprise continues to improve.However,in the long run,some indicators showed a trend of slowing down or even declining in the second year after merger,and the role of merger in promoting enterprise performance needs to be strengthened.Based on the above conclusions,this paper draws the enlightenment for enterprises and governments.From the perspective of enterprises,enterprises should formulate scientific and reasonable merger and acquisition plans according to their own strategic planning and strength,deepen the integration comprehensively after the merger and achieve substantive restructuring;In addition,enterprises should deepen the concept of sustainable development,and attach importance to improving environmental performance and social performance while pursuing financial performance after merger,so as to promote balanced development in three aspects and enhance the comprehensive strength of enterprises.From the perspective of the government,relevant government departments need to give correct guidance to promote enterprises to carry out substantive restructuring,reduce overcapacity,reduce blindly following the trend,only to expand the scale of inefficient mergers and acquisitions;At the same time,laws and regulations on social responsibility information disclosure in steel and other "three high" industries should be improved,the forms and contents of information disclosure should be standardized,and the awareness of environmental performance and social responsibility performance of enterprises should be strengthened.