Research On The Impact Of Digital Transformation Of Iron And Steel Enterprises On M&A Synergy

In recent years,mergers and acquisitions in the steel industry have attracted much attention,and the wave of mergers and acquisitions has reached its peak under the guidance of relevant policies.However,the poor integration effect after mergers and acquisitions has always been an unsolved problem.As a major steel M&A enterprise,Baosteel’s involvement in digital transformation technology has effectively improved the integration of mergers and acquisitions between parent and subsidiary companies.In this process,Baosteel’s distinctive digital transformation features and M&A integration model have reference significance.This article uses the case study method and literature research method,and on the basis of sorting out and summarizing the information asymmetry theory,takes Baosteel Co.,Ltd.as the research object,focusing on analyzing the case of Baosteel Co.,Ltd.’s acquisition of Wuhan Iron and Steel.Taking Baosteel’s digital transformation as a cause variable and merger and acquisition synergy as a result variable,this paper deeply explores the impact of digital transformation of steel enterprises on merger and acquisition synergy.Firstly,starting from the internal and market needs of the enterprise,analyze the reasons for Baosteel’s digital transformation;Secondly,it summarizes the characteristics of Baosteel’s digital transformation;Thirdly,it analyzes the synergy effect of Baosteel’s acquisition of Wuhan Iron and Steel by using the accounting index method;Finally,through the establishment of an impact mechanism,the coupling relationship between digital transformation and mergers and acquisitions synergy is revealed.This study found that:(1)The reasons for Baosteel’s digital transformation include improving the performance of merger and acquisition integration,optimizing the production control process,improving the market risk resistance and promoting the efficient use of capital resources.(2)The characteristics of Baosteel’s digital transformation can be summarized into three aspects: the reconstruction of management resources,the sharing of customer resources and the integration of capital resources.(3)The involvement of digital transformation in the acquisition of Wuhan Iron and Steel by Baosteel showed good management synergy,operation synergy and financial synergy.(4)The mechanism of Baosteel’s digital transformation affecting M&A synergy has three aspects: achieving management synergy by accelerating the unification of management resources of parent and subsidiary companies,achieving operation synergy by improving the scale effect boundary of the group,and achieving financial synergy by promoting the integration of industry and finance.(5)This paper believes that when digital transformation is involved in M&A integration,enterprises should exert the force of technological resources to promote the integration of management resources,production resources,sales resources and financial resources of parent and subsidiary companies.At the same time,enterprises should enhance the support of strategies and systems for digital transformation,carry out production process reengineering in combination with their own development stages,improve the planning and scheduling ability to promote sales synergy between parent and subsidiary companies,and pay attention to the role of digital means in reducing financial risks.