Research On Financial Performance Of Baosteel’s Acquisition Of Wisco

Iron and steel industry has been on the various aspects of the national economy development has special effects,but as the economic cycle fluctuation and the progress of The Times,great changes have taken place in industrial structure and developing trend are also,this virtually force of iron and steel industry as a traditional heavy industry constantly upgrading and merger and reorganization,and the purpose of merger and reorganization of the benefit to capacity,play a synergistic effect,ultimately improve financial performance,so financial performance after M&A become indispensable to M&A events evaluation index,the index is to determine whether the merger and reorganization of a mark of success.Firstly,this paper introduces the research background,significance and overall structure framework of baosteel’s merger with wuhan iron and steel group,and introduces the concept of merger and acquisition,the concept of merger and acquisition financial performance and the evaluation method of merger and acquisition financial performance from a theoretical perspective.Secondly,it describes the relevant policy background of baosteel’s acquisition of wisco,the background of the steel industry and the corporate background of both sides of the merger.Then it expounds the motivation of the acquisition of wisco by baosteel from both internal and external aspects,and introduces the specific process of the merger.Next,this article mainly aims at the financial performance of the treasure force before and after the merger and acquisition are analyzed and compared,from the Angle of financial indicators,the overall baosteel M&A wisco makes the obvious synergistic effect play,four basic improve ability,though the ability lower than industry average,but for mergers and acquisitions in the late growth still hold optimistic attitude,and calculation and analysis of EVA more reflects the good performance of M&A,two years after the merger and acquisition has obvious increase,it can be seen that baosteel M&A cases of wisco is successful;Finally,the paper summarizes the experience of the improvement of financial performance after M&A and draws the inspiration for other steel enterprises’ M&A.In view of the deficiencies compared with the industry comparable average,the paper puts forward Suggestions for further improving the financial performance after M&A of Baowu.