M&A Of China Steel Industry Based On Case Studies

In recent years, the M&A of China steel industry has stepped into a full accelerating stage. The scale of steel industry has indeed been larger, however, Whether the core competitiveness has been optimized? This thesis analyzes the motivation,the acquisition process and the performance about Baosteel's acquisition of Bayi Steel Group and the M&A of Hebei Steel Group, summarizes the key factors that contribute to Baosteel's successful acquisition and the lesson of Hebei Steel Group, so as to provide references for the steel companies who are planning an acquisition.Through case research the thesis proves that M&A has been the main way for enterprises to expand the production scale, increase market share, eliminate trade barriers, and enhance the influence and competitiveness; M&A of China steel industry is dominant by the central government, but we should also obey the laws of the market. itself. Baosteel adopts the new mode of Government promotion+Marketing performance" to solve the benefit conflicts among concerned entities. This conforms the feature of China M&A, obtains a win-win result. However, the M&A of Hebei Steel Group harms the interests of small and medium investors, leads to the poor efficiency of the M&A.