Research On Financial Integration After Mergers And Acquisitions In China’s Steel Industry

With the rapid development of China’s steel industry,the structural problems of the steel industry have become increasingly prominent.The low industrial concentration and unreasonable capacity layout have seriously affected the development of the steel industry,and the lack of research and development and innovation of steel companies have also restricted the enterprises.Transformation and upgrading,many steel companies are in trouble.Therefore,in the context of supply-side reforms,the state has also introduced a series of policies to encourage enterprises to get out of the predicament through mergers and acquisitions.Mergers and acquisitions are an effective way for enterprises to reorganize resources to improve efficiency,and steel companies in trouble are more difficult to integrate due to their own characteristics.As a key part of M&A integration,financial integration plays a crucial role in the success of M&A.All along,the financial integration after mergers and acquisitions is a proposition that scholars and experts at home and abroad pay more attention to.The literature already explains the effect of financial integration after mergers and acquisitions on the effectiveness of enterprise value recovery,but does not point out its specific integration factors.And the path,especially in recent years,the merger and reorganization of the steel industry has increased,and the industry urgently needs corresponding research to guide.Based on relevant research at home and abroad,this paper focuses on the research subjects in the troubled steel enterprises.Firstly,the paper clarifies the relevant literature and theoretical basis at home and abroad,conducts literature review,and then initially establishes the required theoretical analysis framework.Secondly,this paper expounds the development of China’s steel industry and the situation of mergers and acquisitions,and analyzes the problems existing in the integration after mergers and acquisitions.Then,this paper analyzes the case of Baosteel’s acquisition of WISCO,including the case overview,the motivation of Baowu Steel’s mergers and acquisitions,the main measures of phased financial integration and the integration effect.Finally,the paper is inspired by the case data.On the basis of extracting the theoretical elements of the financial integration of iron and steel enterprises,the paper draws the integration focus and the financial integration path of the final recovery state that the steel enterprises need to pay attention to in each integration stage.The conclusions of this paper are as follows:(1)Based on the analysis of the financial integration measures of the case object “joint phase,integration phase,integration phase and combination phase”,the basic measures for financial integration after iron and steel mergers and acquisitions are summarized;(2)Recovering the recovery targets for all stages of troubled steel companies,namely;(3)Establishing a target for trapping The dynamic integration of financial integration after the dilemma of steel companies.