Current Situation And Countermeasures Of China's Steel Company Mergers And Acquisitions

As an important part of our national economy, the development of steel industry plays an important role in the development of the overall national economy, so the development condition of steel industry gets so much public attention. At present, China's steel production has ranked one for continuously thirteen years in the world. China's steel industry Maintains sound development momentum, and domestic steel demand maintain steady growth, so it is optimistic about future trends. However, there are a number of letters to be resolved in the development process of the entire industry. How to effectively solve these problems is a key factor in the Shifting process from large to strong of China's steel industry, and even it is important in the sound development of the whole national economy. So that is a very important research topic.Based on enterprises mergers and acquisitions basic theory, this paper research on mergers and acquisitions forces of the neo-classical economic theory, the new system of economic theory, industrial organization theory, value creation theory. We can get conclusion that it is possible to adopt M & A means to achieve their development in China's steel enterprises.At present, China's steel company acquisitions continue to emerge in support of national policy. As China's steel enterprises are mainly state-owned enterprises, so the main protagonist of mergers and acquisitions is that the Government, the most approaches used is to transfer without compensation. Because of state-owned, the current tax system and the personnel system, that requires to existence of complex interests in China's steel mergers and acquisitions.From our present situation of steel enterprises mergers and acquisitions, this paper makes a detailed analysis of our problems. As the government is the leader in mergers and acquisitions in the steel industry, a few acquisitions departure from business goals. All fast-growing foreign steel companies are through mergers and acquisitions, restructuring of the joint, integrated resources, improve the overall steel production capacity. This paper analyzes the development of steel enterprises Mittal Group process and the characteristics of mergers and acquisitions, which is the world's largest steel enterprises,as well as analysis of steel power country Japan's domestic steel industry mergers and acquisitions.From above, we have known the present situation and existing problems in China's steel company mergers and acquisitions, and drawn on experience in mergers and acquisitions of foreign steel companies. The last part of the paper puts forward countermeasures of China's steel mergers and acquisitions.The main contribution of this paper are:first, the necessity for steel mergers and acquisitions mainly is researched from industrial economic theory; second, carried out a comparative analysis of domestic and foreign a steel companies M & A case in China and abroad.