Implications For China's Cross-border Mergers And Acquisitions Of The World's Steel Industry

M & A is the eternal topic in economic area. Today, economic globalization in the world, only an industry completely integrated into the global, can it be able to expand and not to be eliminated; China's steel industry is no exception. The reason why this article chooses China's steel industry as research subject is that during the twelfth Five-Year Plan in China, the general idea that transforming the development mode of China's steel industry is to eliminate backward production capacity, mergers and reorganization and technological upgrading, among which, the elimination of backward production capacity is a prerequisite and also the focus of the steel industry restructuring; mergers and reorganization is the main ways and channels to improve the overall competitiveness of the steel industry; and technological innovation and transformation is the key factor and a prerequisite for the former two. With China's entry into post-industry area, iron and steel industry will become a competitive industry, not just the national strategic. Iron and Steel Group will attempt to access to Chinese market by cross-holding or sole form. What Chinese steel enterprises should do? This article mainly elaborates that in the context of globalization, Chinese steel enterprises should take the attitude of R & D cooperation to fight for their greater profits and greater market share.First, the Introduction describes the background and significance of the major raised issues, literature review, the research content and research methods, the difficulties article and the possible innovations and so on. The second part mainly discusses the relevant basic theory. For example, the meaning and types of the cross-border mergers and acquisitions, and analysis related theory of cross-border M & A, these theoretical bases pave for the following research. The third part analyzes the status, characteristics and related issues of the steel industry cross-border mergers and acquisitions in the world. Concluding that the trend of M & A in the steel industry in the world transfer to developing countries, and the Chinese market has become the destination of the international iron and steel enterprises mergers and acquisitions, the important part of their globalization strategy. In addition, this part still involves the industrial security issues. Because the steel industry is related to the infrastructure of a country, cross-border M & A in steel industry area will give a threat to a country's industrial security. From the microscopic point of view, Part IV study the iron and steel enterprises cross-border M & A cases in China, from which this part summarize the characteristics of mergers and acquisitions in China, and then use the Prisoner's Dilemma Model explains the reason that why the steel companies are trying to enter China market by cross-holding and wholly owned subsidiaries. Stackelberg Model assumes that China has two iron and steel enterprises and analysis what the two enterprises should do to respond the transnational companies in China. Part V is based on previous relevant theoretical and empirical study concluded some policy recommendations on steel industry during the Twelfth Five-Year Plan in China. Continue to unswervingly implement the international strategy of going out; re-positioning China's steel industry; continue to take path of the mergers and acquisitions in the domestic market; grasp the industry consolidation, at the same time actively carry out R & D cooperation within the industry, which can not only enhance the industrial competitiveness, but also ensure the implementation of the environmental standards of energy saving.In this thesis, at the premise of theoretical study, by analyzing the status, characteristics and related issues of the steel industry cross-border mergers and acquisitions in the world and studying the characteristics of mergers and acquisitions in China, conclude that the trend of M & A in the steel industry in the world transfer to developing countries, and the Chinese market has become the destination of the international iron and steel enterprises mergers and acquisitions, the important part of their globalization strategy. In order to deal with this situation, the Chinese iron and steel enterprises should firmly take the road of R & D cooperation to maintain market share and hold the corresponding high market profits.