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Research On Synergistic Effect Of Baosteel’s Merger And Acquisition Of WISCO Under The Background Of Supply Side Reform

Posted on:2020-02-03Degree:MasterType:Thesis
Country:ChinaCandidate:C T WangFull Text:PDF
GTID:2381330623450291Subject:Accounting
Abstract/Summary:PDF Full Text Request
At present,China’s steel industry has a high asset-liability ratio,sustained profit pressure,a decline in industrial profits,a serious overcapacity,and a contradiction in oversupply.In 2015,China first proposed “supply-side reform”,the most important of which was“de-capacity”.One of the important measures for the supply-side reform of China’s steel industry is to reorganize iron and steel enterprises,achieve the goal of scale-up of China’s steel enterprises and enhance industrial concentration through restructuring,and help promote the steel industry to resolve overcapacity.Baosteel and Wuhan Iron and Steel are the enterprises supervised by the State-owned Assets Supervision and Administration Commission of the State Council,and they belong to large-scale iron and steel enterprises in China’s steel industry.Restructuring them is a pilot of the supply-side reform of China’s steel industry.Therefore,this paper selects the merger and reorganization activities of Baosteel and Wuhan Iron and Steel as the research case.Firstly,it analyzes the motivation of mergers and acquisitions from the external and internal levels,and then analyzes the synergistic effects generated by mergers and acquisitions,from business synergy,management synergy and financial synergy.At the level of analysis,the financial indicators are selected to evaluate the three synergistic effects.Based on the analysis results of synergy and the measures taken by enterprises in the context of supply-side reform,this paper will sort out the impact of supply-side reform on synergy.Finally,the countermeasures are written from the macro and micro perspectives.Advising companies on compliant supply-side reforms for post-merger integration measures,and providing advice on supply-side reform policies in the steel industry.After research,the conclusion of this paper is as follows: First,after the merger,the profitability of the enterprise is improved,the business synergy is better;after the merger,the management cost of the enterprise is reduced,the asset management level is increased,and the management synergy effect is realized;the solvency of the enterprise after the merger has not decreased.The financial synergy is not significant.Second,the supply-side reform has had an impact on the synergy of the Baowu Group.In accordance with the requirements of “de-capacity” and “cost reduction”,the company reduced backward production capacity and promoted business synergy by means of coordination measures such as location and procurement;the company carried out employee resettlement according to the requirements of “cost reduction” and “compensation”Collaborative initiatives with technology research and development to promote management synergies;companies adjusted their debt structure in accordance with the requirements of “de-leverage” but failed to reduce overall debt levels.The problem of“de-leveraging” should be shared by the state and enterprises.
Keywords/Search Tags:M&A, Synergy, Supply-side reform
PDF Full Text Request
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