Research On The Performance Of Hbis Group's Acquisition Of Smederevo Steel Plant

Since the outbreak of the global economic crisis in 2008,the development of China's steel companies has been declining,the development of the steel industry has been in trouble,and problems such as overcapacity,low industrial concentration,and irrational product structures have seriously hindered the development of steel companies,and many steel companies face losses.In 2016,the industry began to implement supply-side reforms,and significant progress has been made in reducing production capacity,but it cannot fundamentally change the dilemma faced by steel companies.The strong alliance between Baosteel and Wuhan Iron and Steel pointed the way to the troubled iron and steel enterprises and opened the prelude to the reform of the steel industry.In theory,mergers and acquisitions between steel companies can optimize their resource allocation,achieve complementary advantages,and improve input and output levels,which will greatly benefit the healthy development of enterprises.As a famous iron and steel producer in China,HBIS GROUP has made unremitting exploration on the way to internationalization,exploring the international market through M & A.This paper takes the merger and acquisition of Smederevo steel plant in Serbia as an example.Firstly,it combs the literature related to merger and acquisition at home and abroad.On this basis,it mainly analyzes the motivation of enterprise merger and acquisition,the change of performance before and after merger and corresponding measures.It mainly uses Non-financial analysis,financial analysis and Principal Component analysis to evaluate before and after merger and acquisition of the long run,the acquisition of Smederevo steel plant by HBIS GROUP is successful.This successful M & A case can summarize the precautions of M & A and provide some experience for other enterprises of the same type.