Steel Industry, Mergers And Acquisitions Case Studies

With the development of globalization, the integration through merger and acquisition (M&A) has become the trend of the evolution of global steel industry. In China, the activities of M&A and restructuring are also accelerating. It has been a crucial way to become an international competitor in the steel enterprise by expanding the economy of scale, lower the cost, increasing efficiency and effective operation structure to gain market share, and enhancing business competitive advantages.This thesis starts with the basic ideas of M&A and then presents an analysis of the development of Mittal including the background, features and cooperative effectiveness of its acquisition of Arcelor. The thesis summarizes the pattern of forming large-scale steel manufacturing zones in US, Japan, Korea and Europe. Compared with the status quo and conglomeration ratio of the steel industry in China, it is concluded that strategically the best choice for Chinese steel industry to gain competitiveness is through M&A. Finally, the author suggest to encourage the M&A within Chinese steel-making enterprises after analyzing the advantages and disadvantages of the M&A in China's steel industry.