Research On Risk Control Of Financial Integration In Baosteel's Merger And Acquisition Of Wuhan Iron And Steel Company Limited

Affected by the transition from a high-speed growth period to a medium-to-high-speed growth period,China's steel industry has also entered the downside of economic development.Industrial dispersion,homogenization competition,and imbalance between supply and demand in the upstream and downstream have become increasingly apparent.Under the control of the state's macroeconomic policies,the steel industry has undergone mergers and acquisitions to get rid of economic difficulties.Enterprises will implement integration after mergers and acquisitions,carry out structural adjustments,and achieve rapid economic growth.The benefits brought by mergers and acquisitions also bring higher risks.Relevant research shows that financial integration risks lead to more cases of merger failure.It can be seen that controlling the risk of financial integration is of great significance for the success of mergers and acquisitions and the improvement of the status quo of the industry.This paper mainly focuses on the identification,taking the identification of financial integration risks as the entry point,firstly,the financial data after the acquisition of Baosteel Co.,Ltd.was analyzed and compared with the industry data,which confirmed that the financial capabilities of Baosteel Co.,Ltd.after the merger and acquisition were improved,and the overall operation effect was stable.At the same time,the potential financial integration risks are gradually revealed,the imbalance of debt capital structure leads to solvency risk,financial organization integration risk,etc.,and the analytic hierarchy process and fuzzy comprehensive assessment method are used to evaluate the financial integration risk.Baosteel has a low risk of financial integration,which is mainly reflected in both solvency and profitability.Finally,measures such as debt adjustment and asset structure adjustment are carried out to control the risks of the company.In the future,steelcompanies will pay more attention to the debt repayment risk and profit risk of enterprises when controlling financial integration risks,and prevent them by optimizing debt structure and implementing budget management.