Research On The Impacts Of M&A And Restructuring On Steel Industrial Competitiveness In China

The steel industry is closely connected to the sustainable and harmonious development of Chinese economy. The mergers and acquisitions (M&A) among the steel corporations began with the "ninth Five-Year" period. Over ten years' development, the steel industry of China has already held place in the world. Now China is one of the world biggest countries in term of steel production but not the great power.. And the improvement of the competitiveness met some obstacles. Therefore, it is very significant that this thesis researches the impact of M&A and restructuring on competitiveness of steel industry in China.Based on "Michael Porter Diamond model" (PDM), the thesis conducts research on the M&A characteristics of steel industry in China which have impacts on steel industrial competitiveness in the background of M&A and restructuring among the home and aboard steel corporations,. In the process of researching, the thesis makes use of mathematical model and collects data of M&A and restructuring in steel industry. According to the data, it analyzes the influence of M&A and restructuring on industrial competitiveness.This thesis is composed of six parts. The first part is an introduction that mainly reveals the background and the practical significance of the study. The second part reviews on the related theories. It mainly comments on these theories from the theory basis and the existing research achievements. Under the PDM framework, The third, forth and fifth parts for frame, respectively from six aspects—factors of production, requirements, related and support industries, strategy of corporations, opportunities and the role of government—analyzes the impact of M&A on industrial competitiveness. The sixth part is a conclusion part.This thesis firstly concludes that the steel industry is an industry with obvious economies of scale characteristic and the expansion of scale can limit the rise in the price of the factors of production. Secondly, the M&A of steel industry in China includes horizontal M&A and vertical M&A. Combining the horizontal M&A and the vertical M&A is the tendency in international economy. The steel industry and the upstream and downstream industries compose the steel industry chain, which contribute to improvement of steel industrial competitiveness in China and take advantages in international competition. Thirdly, the steel industry in China becomes powerful in the way of the effective M&A and restructuring that will change fundamentally the disordered scattered and weak situation of steel industry in China and develop the steel industrial competitiveness.The innovative point is that the thesis makes use of mathematical model and historic data to analyze qualitatively the impact of M&A and restructuring on the steel of industrial competitiveness in China.