M&A Case Study Of HeBei Iron And Steel Group

With China’s rapid economic development，Economic demand for steel is growing wider.In theseenterprises varies greatly, the quality varies greatly; this causes a lot of low-level redundantconstruction. Iron and steel enterprises in China overall industrial concentration is not high,serious waste of resources, which seriously affected China’s economic development. The steelindustry due to the long-term accumulation of extensive development have become increasinglyprominent, affecting the ability of independent innovation of China’s steel industry, and resultingin unreasonable industrial layout, also affected the industry goal of China’s enterprises bigger andstronger, making the international competitiveness of Chinese enterprises weak. So that there isno right to speak, in the international iron or e bargaining power while significantly reducing theprofitability of the steel industry.China’s steel enterprises need to expand the size of the business through economies of scale toresist external competition. Mergers and acquisitions to a certain extent can help companiesachieve the industrial objectives of the bigger and stronger. In this context, iron and steelenterprises in China’s mergers and acquisitions seem to have the urgency and the significance ofthe times. However, due to the particularity of China’s economic system, enterprises have thenature of the state-owned equity, mergers and acquisitions reorganization is bound to affect thelevels of local interests, resulting in the difficulties of the merger and reorganization ofenterprises, the structural contradictions in the industry to further prominent. In this case, theChinese Government is actively promoting the merger and reorganization of China’s iron andsteel enterprises to change this situation, play the advantages of the industry, improve theinternational competitiveness of the iron and steel enterprises.The context of China’s iron and steel enterprise merger and reorganization, the status of domesticand foreign iron and steel enterprises in mergers and acquisitions analysis, mergers andacquisitions is the only way for China’s steel industry to grow and develop. In addition, He BeIron and Steel Group, for example, the pattern of mergers and acquisitions in iron and steelenterprises were analyzed and found that the more successful regional integration of the He BeIron and Steel Group in China, and are reference for other steel companies.