Research On The M&A Performance Of Shandong Iron And Steel Group

Mergers and acquisitions as a complex corporate activity have played an importantimpact on its trade and the whole development of the national economy. In recent years,more and more companies have chosen to take the mergers and acquisitions to achievetheir own development goals, such as lowering operating costs, obtaining economies ofscale, and enhancing market competitiveness.Steel industry as an important factor in promoting the sustained and healthydevelopment of the national economy, China has important strategic significance. Since theoutbreak of the global financial crisis, China’s iron and steel industry has been badly hit,the decline in market demand, lower prices and increasing the pressure to survive, and thestable development of the iron and steel enterprises face enormous challenges. In the caseof the downturn in the macro environment, the iron and steel industry through restructuringbetween enterprises effective M&A integration, optimize the allocation of resources toimprove economic profit. Mergers and acquisitions can not be confined to the twocorporate assets, personnel and other simple coincidence, but need to be fully integratedfinancial, production and management, M&A performance analysis, identify problems andimprove in order to achieve corporate goals.This paper first introduced the Shandong Iron and Steel Group’s acquisition of thebackground and significance of the performance of rearrangement, summarized theresearch on mergers and acquisitions at home and abroad. Followed by defining theconcept of mergers and acquisitions and performance to explain the theoretical basis of theM&A performance, introduce the M&A performance evaluation methods. Then, describedthe background of the merger and reorganization activities, processes of Shandong Ironand Steel Group, from four aspects of its profitability ability, solvency ability, operationability and development ability to analyze M&A performance. At last, pointed out theexisting problems in the Shandong Iron and Steel after the merger, and then proposed fourmeasures to help Shandong Iron and Steel M&A Performance: enhancing cost control,adjustment of product structure, improving financial integration and managementefficiency.