Performance Analysis Of M&A In Steel Industry

After the rapid development of the steel industry in the past ten years,the output and quality of our products have been improved.However,the development of the steel industry has now witnessed a significant increase in production and the phenomenon of overcapacity.The period of high profit growth is gone.This shows that my country's steel industry is entering an adjustment period and needs to find a way out of the current dilemma.With the deteriorating operating environment,if my country's steel companies want to escape from difficulties and achieve sustainable development,they must inevitably take the road of mergers and acquisitions,which is also the choice of the times.In view of my country's special market and economic environment,when steel companies actively seek help from mergers and acquisitions,they have used a lot of market resources and have a wide range of influence.In the context of the national policy of energy conservation and emission reduction and removal of excess capacity,it is very important how to take the road of mergers and acquisitions in my country's steel industry enterprises to optimize resource allocation and upgrade the entire industrial structure.Therefore,the research in this paper has important practical significance.Based on the selection of Baosteel's M&A case,the article first states the background significance of the research,introduces some theories on the performance of M&A and M&A financial accounting;secondly,it analyzes the M&A and acquisition of Baosteel's M&A events in detail,and studies its motivations and methods of M&A In the subsequent development impact;the next step is to analyze the financial indicators of the company,first to compare the financial indicators before and after the merger,and then to compare the industry averages for horizontal comparisons,and then find that Baowu after the merger in the first two The year has been greatly improved,but it is still lower than the industry average,but it is worth noting that in 2019 began to usher in the inflection point,and gradually equalized or even exceeded the industry average,indicatingthat Baowu's long-term development ability is very comparable to the industry Obviously,the calculation and analysis of its EVA found that Baowu's economic added value increased rapidly at the beginning,but the subsequent value increase rate gradually decreased.As of September 2019,Baowu's economic added value was still A positive value indicates that the value of the company has continued to increase.It can also indicate that the Baowu M&A is a successful M&A.Finally,through analysis,we can draw the empirical enlightenment from Baosteel's merger and acquisition of Wuhan Iron and Steel,hoping to give some reference to the same company or the same industry.