Analysis On The Motivation And Performance Of State Owned Iron And Steel Enterprises Reorganization

Chinese iron and steel industry has experienced a long development process,and the progress in the exploration has also produced adverse consequences such as overcapacity and low industry concentration.In order to solve the adverse consequences and promote the steel industry to optimize its industrial layout and product structure,in 2016,the state hoping that the state-owned steel enterprises and even private steel enterprises can reform through these policies.Based on the growth and development of Baosteel Group and a series of mergers and acquisitions,this paper studies the merger of Baosteel and Wuhan and the "Bao Ma" restructuring under the background of low industry concentration and steel industry reform.Through the research on the motivation and performance results of Baosteel Group’s reorganization,we can not only see the contribution and effect of the merger and reorganization road of strong alliance for China’s iron and steel industry at present,but also a precedent for the enterprises who want to carry out the strong alliance in the later stage to get guidance and reference.The research content of this paper can be divided into three parts.The first part is the research foreshadowing part,which analyzes the introduction,the research background,the definition and motivation of restructuring,and the development,current situation and the characteristics of China’s iron and steel industry.The second part is the case study.This part selects two cases of Baowu merger and Bao Ma reorganization,introduces the reason why chooses the case,and the enterprises,the event’s general situation,the motivation,the short-term and long-term financial performance of the case.Finally,the third part puts forward the research conclusions and suggestions,as well as limitations and prospects.One belt,one road,China’s Yangtze River economic belt,is a new strategy for Baosteel.In the short-term performance is good,long-term performance has also been significantly improved,with the gradual release of synergies,non-financial performance is also very bright.Therefore,this paper holds that the series reorganization of Baosteel provides important practical guidance and reference cases for other industries and enterprises in China.