Market And Financial Performance Analysis Of Baosteel's Merger And Acquisition Of WISCO

The iron and steel industry is an important strategic industry in China,and its development has always been closely related to the development of the national economy.In recent years,the steel industry has been affected by industrial problems such as overcapacity,and the overall profit rate has continued to decline,and the development situation is worrying.In order to promote the substantial adjustment of the industrial structure of China's steel industry,the government strongly supports domestic steel companies to improve the overall income level and market competitiveness through mergers and acquisitions.Various types of mergers and acquisitions activities between enterprises can not only achieve rapid expansion of the scale of enterprises in a short period of time,but more importantly,optimize the integration of production,finance and manpower resources among enterprises,thereby achieving overall improvement of business operations.The purpose of performance.In many domestic and foreign research on mergers and acquisitions,the impact of M&A activity on corporate performance is one of the most important parts.This paper mainly analyzes and studies the market and financial performance of Baosteel's share swap to absorb and merge WISCO shares.First of all,this paper starts with the background,realistic and theoretical significance of the case of mergers and acquisitions in the steel industry,and briefly describes the main contents and innovations of this paper.On the basis of literature review of the existing researches of many scholars at home and abroad,this paper summarizes and summarizes the two major aspects of the research on M&A performance,namely the basic theory of M&A performance and M&A performance evaluation.Then,after briefly introducing the basic situation of the companies in the merger and the merger process and the reasons,enter the core performance comparison analysis part of the full text.In the specific analysis,the event research method was used to calculate and calculate the combined excess performance of the mergers and acquisitions before and after the release of the M&A announcement date,and then the financial performance analysis method was used to calculate and analyze the Baosteel Group's completion.After the merger and acquisition of WISCO,the financial performance changes in profit,debt repayment,operation and development,and the comparison between the predicted value and the actual value verified that the M&A event actually produced synergies.The last part of the paper summarizes the research and analysis conclusions of this case,and also briefly introduces the enlightenment and prospects for the subsequent M&A activities among domestic steel companies.