Research The Mode On M&a And Reorganization Of China’s Iron And Steel Industry Under The Supply Side Structural Reform

At present,China’s economic development is entering a new normalcy of slowed speed and structural optimization.The iron and steel industry is facing the opportunity of structure adjustment and demand upgrading,but at the same time it is also facing the severe challenge of excess capacity and huge operating losses.The issue to cut overcapacity of iron and steel industry has become the focus and difficulty of the current reform.Therefore,it is urgent to push forward the supply side structural reform,and eliminate the excess capacity by means of mergers and acquisitions to achieve the poverty alleviation development of the iron and steel industry.This paper mainly studies the jssue of how to effectively promote the merger and reorganization of China’s iron and steel industry on the current supply side structural reform.The main content of this paper can be divided into the following four parts.1.Explain the theoretical basis and literature review of M&A in the iron and steel industry.First,historically discusses the concept of mergers and acquisitions,as well as the main form of the current division.Then studies the theoretical research of mergers and acquisitions,and analyses combined with China’s iron and steel industry.Finally,summaried separately in three aspects of motivation,performance,and integration of the domestic and international steel industry mergers and acquisitions.2.Demonstrate the relationship between supply side structural reform with mergers and acquisitions.First summarizes the evolution characteristics of the merger and reorganization of China’s steel industry.From the changes and characteristics of mergers and acquisitions policy,China’s steel industry could be divided into four periods.Then,introduces the five major problems from the merger and reorganization of China’s iron and steel industry.Finally,puts forward the supply side structural reform to promote M&A and promote the transformation and upgrading of the iron and steel industry.3.Analysis the main mode of mergers and acquisitions in China’s iron and steel industry.Firstly,defines the three modes of M&A,and analyzes their respective characteristics and applicability.Secondly,uses the model of Stackelberg analyzing three kinds of the mergers and acquisitions,found the merger and reorganization of iron and steel industry is an effective way to resolve the overcapacity.Finally,builds amodel of quantitative performance of mergers and acquisitions by the financial index method,based on the comprehensive evaluations of four years before and after the merger and acquisition to reflect the performances of the enterprise.4.Put forward the suggestions of China’s iron and steel industry mergers and acquisitions under the current supply side structural reform.Propose concrete countermeasure proposal from aspects of defining the relationship between the government administrative intervention and market mechanism,encouraging various kinds of mergers and acquisitions,deepening the reform of mixed ownership,promoting the integration of enterprises and developing the industry chain.The paper has four main conclusions.(1)Mergers and acquisitions is an important way to resolve China’s steel overcapacity and optimize the supply side from the development process of foreign steel industry and the analysis model of game theory.(2)Points out that at present the government should actively guide to promote the stage between the iron and steel enterprises mergers and acquisitions from the current situation of China’s iron and steel enterprises and state-owned property losses.(3)According to the different characteristics of the iron and steel enterprises,integrates China’s iron and steel industry with a variety of mergers and acquisitions combination mode.(4)Focus on internal integration strength of the existing steel enterprises or newly established enterprises after merger and acquisition.There are three main possible innovation points in this paper.(1)Investigate the mergers and acquisitions policy changes and the evolution characteristics of China’s iron and steel industry,as well as analyzing the deep reason of the low efficiency of mergers and acquisitions.(2)Establish a performance evaluation model and the performance evaluation index system of the China’s iron and steel enterprises.And analysis the examples mergers and acquisitions of the iron and steel industry from2005 to 2014.(3)Propose the combination mode of varied integration of mergers and acquisitions.