The Empirical Analysis On M & A Performance Of Companies In Steel Industry

China's steel industry as a pillar industry, is clearly struggling to become stronger national industry. However, China's steel companies have low industry concentration, poor elimination of backward production capacity and other issues, these shortcomings hamper its steady development. Therefore, accelerating the pace of the steel industry's merger, increasing industrial concentration has become a national problem.2005 to 2009, the state has issued "Steel Industry Development Policy" and "Steel Industry Restructuring and Revitalization Plan", to encourage the consolidation and to introduce a new policy for the steel industry. Can be seen, for the restructuring of the steel industry, the state has positive attitude. However, due to the complex diversity, restructuring the steel industry can't achieve the desired effect performance, these are the topic of national concern. Therefore, to analyze the motives of steel industry restructuring and performance is of great practical significance and reference value.This paper starts from the status of the steel industry, with national policy, analysis the steel industry's M&A motives. This paper has used financial indicators, studied the M&A events between 2005-2008, analyzed composite scores for each year under the M&A performance. The results show that, China's steel companies is not satisfactory performance. In M&A compared to the previous year, performance has dropped, after M&A, performance has improved, but still not as before the M&A. Can be seen, M&A did not achieve substantial success. For this results, we analyze the causes, mainly due to unreasonable government promotion, integration errors after M&A, the blind scale and so on, in the current economic environment, this paper put forward proposals to improve performance.