Research On The Merger And Acquisition Of China 's Iron And Steel Industry Under The New Normality And Its Development Countermeasures

At present, China has entered the new normal of slowing economic growth, changing with the development of power and optimizing the structure of economic development. All sorts of challenges follow, and policies change.all industries of our country has been adjusting its development strategy. The steel industry as a pillar industry of the national economy is no exception. Under the new normal, the steel industry is facing the national economy slowing down lead to overcapacity, financial pressure; optimizing the economic structure requires the steel industry to change the low industrial concentration, low-profit status of the development of the whole industry; development of power conversion requirements of the technology of iron and steel industry must improving; the new tough environmental laws exacerbates the steel industry environmental pressures. Faced with these challenges, mergers and acquisitions become one of the effective solutions. Meanwhile, merger and reorganization of the steel industry in our country have some problems in the current economic conditions, For example, conversion of the steel industry merger subject lead to Industrial concentration declined year by year; due to mergers and acquisitions difficult to integrate and loose form of association leads to the formation is more important than real; mergers and acquisitions by the government-led planning are the lack of market initiative. Under the new normal, how to carry out the mergers and acquisitions of the steel industry.Based on the literature review and theoretical study, as the starting point of steel industry’s new development dilemma under the new normal and steel enterprises mergers current problems existed, Analyze the inevitability of M & A from the international steel industry mergers and acquisitions wave of inspiration and the role of M & A for China’s steel industry. Analyze the positive aspects and negative aspects of the feasibility from the policy and the economic situation under the new normal. Hebei Iron and Steel Group Company acquisitions combined with DITH’s case, presented observations with reference to the steel industry mergers and acquisitions development principles in the new norm.The conclusion and contributions of the thesis are:(1) analysis shows that the iron and steel industry under the new normal merger is an inevitable choice. This paper analyzes the steel industry under the new normal inevitability of mergers and acquisitions from two international and domestic aspects. Internationally, summarize the four wave of mergers and acquisitions of iron and steel industry in the world, found easy to induce the steel industry mergers and acquisitions in the economic slowdown, overcapacity situation. At present our country is in the economic development speed is slow, the iron and steel industry overcapacity situation. So the merger is an inevitable choice.(2) provide countermeasures for China’s iron and steel industry under the new normal development of mergers and acquisitions. Different economic development background, mergers and acquisitions strategies will be different. For the iron and steel industry and steel industry under the new normal merger problems, proposed mergers and acquisitions reference steel industry under the new norm. Aiming at the problem of iron and steel industry and steel industry merger problems, this paper proposed a merger the reference steel industry under the new norm. Such as: the implementation of overseas mergers and acquisitions can expand sales and raw material procurement platform, and improve the technology of iron and steel industry, and solve China’s economic slowdown brought about by the problem of excess steel capacity, insufficient consumption and lack of fine steel. Proposed diversification of mergers and acquisitions, to achieve the transformation and upgrading of the steel industry, looking for new economic growth point, to ease the development of the steel industry profit situation. Also proposed to adhere to market led and government support, the implementation of vertical mergers and acquisitions to take a variety of mergers and acquisitions and so on.