Research Into China's Steel Industry Consolidation Models

The paper starts with analyzing the background of China's steel industry. Through a detailed analyses of the development trend of international steel industry and state of China's steel industry, it reveals a rule of the integration between enterprises of China's steel industry; Through a theoretical information research on enterprises merger, acquisition and integration and a deepened a analysis of cases about enterprises integration in steel industry home and abroad, it summarizes some advanced models of integration at present and gives out advantages and disadvantages of all the patterns.The framework is as follows:The first chapter introduces the urgency of steel industry integration from the insights of the 2008 economic crisis, iron ore negotiations and the state's industrial policies. It deepens an analysis of cases about enterprises integration in steel industry home and abroad.In chapter two, it gives brief history review of the Mergers&Acquisitions and integration in steel industry domestic and international. Some characteristics and patterns of integration of different periods are summed up , especially a comprehensive induction on China's steel industry integration patterns in recent years. Based on the analysis of current integration patterns disadvantages, enterprises culture is found to be an important role in the process of integration. The key reason why most of enterprises did not achieve a desire result of integration is that they can't handle culture compatibility issues.The third chapter focuses on internal laws impact status quo of China's steel industry, and to better understanding the industry nature. In order to provide the basis to establish an optimization integrated pattern, respectively from the industry life cycle, market structure, economic cycles and other aspects of analysis of China's steel industry status quo analyzes are made. The interest conflicts caused by multiple capital structure, the advantages and disadvantages of advanced integration theories and experiences and the stronger power of government force more than market force are analyzed the resistance of China's steel industry integration. Combined with case, the production and management ability after integrated of China's steel industry are studied.There are two sort of current integration patterns introduced in chapter 4. The one is scale expansion oriented pattern; the other is resource complementary oriented pattern. With cases study, the disadvantages and advantages are analyzed.In chapter five, a new integration pattern is proposed based on various patterns summed up by scholars. The new comprehensive integration pattern which treats culture as leading force. Currently, the model has not yet been seen in the relevant reports at home and abroad. It is only a theoretical discussion. As to the actual effect on integration of the steel industry, it needs further evaluation.