| Under the background of the new normal,on the one hand,China's steel enterprises respond to the national policies to encourage the merger and reorganization of the steel industry,improve the industry concentration and adjust the industrial structure through horizontal M&A;on the other hand,they seek their own development,expand and strengthen through M&A integration,and improve their competitiveness and influence in the market.Because the horizontal M&A of iron and steel enterprises in China often fail to achieve the expected results,there are problems such as integration but not conformity.Therefore,it is worth studying how to realize the optimal allocation of resources and improve the value creation ability of iron and steel enterprises in M&A.The merger of Baosteel and WISCO is exactly carried out in the new round of restructuring strategy of central enterprises.Both Baosteel and WISCO are state-owned enterprises.Under the background of long-term oversupply in China's steel industry,Baosteel and WISCO shoulder the mission of supply side reform demonstration in the steel industry,which is representative in the merger of steel enterprises.Whether this merger can bring into play the synergy effect and produce good M&A performance is the focus of this paper.This paper mainly studies the economic effect and cause of formation after this merger,and provides enlightenment and reference for steel enterprises to improve economic efficiency.In this paper,literature research,event research,accounting index method and case study method are used to evaluate the M&A performance of this merger.First of all,on the basis of extensive collection and collation of relevant literature at home and abroad,this paper expounds the connotation,influencing factors and evaluation methods of M&A performance under the guidance of M&A theory.Secondly,it analyzes the motivation,plan and process of M&A in the case of this merger.Thirdly,the short-term market performance and long-term market performance of Baosteel after M&A are evaluated by event study method,and the profitability,debt paying ability,operating assets ability and sustainable development ability of Baosteel before and after M&A are comprehensively analyzed by accounting index method,and comparable companies are selected from the industry for horizontal comparison;combined with specific integration measures,this paper analyzes the reasons for the improvement of M&A performance.Finally,the case of this merger is evaluated and summarized,and relevant enlightenment is obtained.This paper finds that this merger has achieved significant positive market effect and created value for shareholders;this merger has achieved remarkable financial performance,expanded scale and strength,increased profit level,improved financial situation and accelerated capital return.The reason why this merger can achieve such good results is that both sides of the merger have obtained good synergy effect,accurately grasped the opportunity of M&A,and greatly improved the market competitiveness.The research innovation of this paper is embodied in three aspects.First,the case of this merger is evaluated in two aspects of market performance and financial performance by using the methods of literature study,case study,event study and accounting index,and the same conclusion is reached,which is rare in the previous case study.Second,in the research of M&A performance,the previous research mainly focuses on the evaluation of M&A performance,and there is less systematic and in-depth analysis on the causes of M&A performance.Based on the evaluation of M&A performance,combined with the actual situation of both sides,this paper analyzes the causes of M&A performance,so the conclusions are more enlightening.Thirdly,this paper deeply explores the causes of performance,and points out that the choice of market opportunity has an important impact on the performance of M&A,which is more enlightening and reference for future M&A. |
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