Research On The Motivation And Effect Of Green Mergers And Acquisitions Of Polluting Enterprises

China’s economy has entered the stage of high-quality development,which requires enterprises to make a comprehensive transition to high-quality development.The traditional extensive development mode of polluting enterprises relies excessively on ecological environment resources,which causes serious ecological environment problems,aggravates the contradictory relationship between economic development and environment,and restricts the high-quality transformation of China’s economy.Therefore,the active implementation of green mergers and acquisitions by polluting enterprises is an important impetus to achieve the goals of resource conservation and environmental protection for polluting enterprises,and to promote the high-quality economic transformation of enterprises.It is particularly important for the high-quality economic development of China.Based on the theory of merger and acquisition and the theory of high-quality development,this paper selects the case of Baosteel merger and acquisition of Wuhan Iron and Steel Co.,Ltd.,and conducts a systematic and in-depth study on the motivation and effect of green merger and acquisition of polluting enterprises.Firstly,the background and current situation of green M&A of polluting enterprises in China are analyzed.The analysis of the current situation mainly from the year,industry and investment and holding situation of the specific analysis.The annual analysis found that the stronger the external environmental regulation,the more active the polluters are in adopting green M&A.Industry analysis shows that traditional and large-scale polluting enterprises are more active in green mergers and acquisitions.According to the analysis of investment and holding situation,it is found that polluting enterprises’ investment in green M&A is relatively cautious but with strong purpose.Secondly,it reviews the merger and acquisition plan and process of Baosteel and Wuhan Iron and Steel.Thirdly,the motivation of Baosteel and Wuhan Iron & Steel M&A is analyzed.For Baosteel,improving business performance,optimizing resource allocation,improving environmental benefits and enhancing international competitiveness are its main motivations.For WISCO,to improve business performance,response to the national advocacy and other reasons to accept the merger.Finally,this paper analyzes the M&A effect of this case from four aspects: market effect,synergistic effect,environmental effect and strategic value effect.The results of market effect analysis show that Baosteel has obtained positive cumulative excess return in the M&A event,which increases the shareholder wealth;The results of synergistic effect analysis show that Baosteel has obtained obvious positive synergistic effect in finance,operation and management;The results of environmental effect analysis show that the M&A event has improved the recognition of Baosteel’s green management,Achieving energy saving and emission reduction in the production process,It improves the environmental effect of products in the future.The results of strategic value effect analysis show that the merger and acquisition has promoted the steady implementation of the strategy of high-quality products and high-quality development of Baosteel.The research of this paper enriches the research content of green mergers and acquisitions of polluting enterprises,and provides some reference for polluting enterprises and other enterprises to choose green mergers and acquisitions.