Research On The Merger And Acquisition Performance Of Baosteel And Wisco,Ltd.

Merger and acquisition is an important means for enterprises to achieve rapid expansion.Successful merger and acquisition can effectively improve the competitiveness of enterprises through synergistic effect.In recent years,with the increasing of downward pressure on the economy,the contradictions and problems accumulated in the rapid development of the steel industry have gradually been exposed,and the problem of overcapacity is particularly prominent.On February 1,2016,the state council issued the opinions on the elimination of excess capacity in the steel industry and the realization of poverty alleviation and development,proposing to reduce production capacity through mergers and reorganizations and other measures.In this context,Baosteel announced in September 2016 that it was preparing to merge and restructure with Wuhan iron and steel company limited,and the merger and acquisition between the two companies was officially completed in February 2017.This thesis studies the merger and acquisition performance of Baosteel absorbing and merging Wisco,Ltd.,from the two aspects of financial performance and ecological performance,and combines the research conclusion with the current national economic situation and policy development,and obtains the enlightenment to the merger and acquisition activities of Chinese enterprises.This thesis combines theoretical analysis with case analysis.The theory part expounds the concept and motivation of merger and acquisition,the concept and related theorie of merger and acquisition performance,and the evaluation methods of financial performance and ecological performance.The case study part firstly introduces the basic situation of Baosteel’s absorption and merger of Wisco,Ltd.,including the macro policy background and industry background of merger and acquisition,the historical evolution,business scope,financial status and operation results of both sides of merger and acquisition,merger process and payment method,and analyzes the motivation of merger and acquisition.Again,the thesis use of financial index method and principal component analysis evaluation of Baosteel absorption merger of Wisco,Ltd.shares financial performance,using the trend analysis and the method of horizontal comparison with six trade company evaluate the ecological performance of the acquisition,the study found that: 1)the country under the capacity and relevant policies to promote Baosteel absorption merger Wisco,Ltd.shares;2)the financial performance of Baosteel after absorption and merger is good,with significant improvement in profitability and development ability,stable operation ability and slightly enhanced debt paying ability;3)the ecological performance of Baosteel stock after absorption and merger has been steadily improved,with strict control of energy consumption,optimization and rationality of resource consumption and sound emission of pollutants.Based on the conclusion of the case study,the thesis draws the inspiration for enterprises and government departments.For enterprises,successful merger and acquisition is helpful to improve their financial performance and ecological performance.For government departments,to solve the problem of overcapacity in an industry,they should actively promote mergers and acquisitions among enterprises and strengthen the disclosure system of enterprise ecological information.