Research On The Motives And Consequences Of Green M&A Of Heavily Polluting Enterprises

In the context of today’s comprehensive and powerful promotion of environmental protection,reducing environmental pollution,energy conservation and emission reduction,and improving the technical level of pollutant treatment are of great significance for heavy polluting enterprises to fulfill their social responsibilities and achieve high-quality development,and green mergers and acquisitions are an effective way that can be chosen in the process of transformation and development of heavy polluting enterprises.As an important part of building materials,cement plays a pivotal role in the development of the building materials industry.With the proposal of the "dual carbon" goal,various ministries and commissions of the state jointly issued the "Implementation Plan for Carbon Peaking in the Building Materials Industry",clarifying the standard system for green buildings and green building materials demand,and ensuring that the building materials industry will achieve carbon peak before 2030.This paper focuses on the midstream manufacturers in the cement industry and studies the green M&A events of cement pipe manufacturers.This paper selects Hanjian Heshan as the case study object,starts from the development cycle of the cement industry,policy and regulatory factors,analyzes the three green M&A drivers of Hanjian Heshan based on the external and internal directions,and then analyzes the consequences of Hanjian Heshan’s three green M&A based on the triple bottom line principle,combined with the mutation progression method and Tobin Q value.Through research,this paper finds that because the development of the cement industry is easily affected by changes in the external environment such as policy environment and industry cycle,the operation of its traditional main business is cyclical and unstable.With the tightening of policies,market expansion,active pursuit of strategic transformation and other factors,Hanjian Heshan carried out a total of three mergers and acquisitions in 2016,2017 and 2018 to realize the process of moving from a traditional concrete pipe manufacturer to a recycling,low-carbon new green environmental protection business,and alleviate the embarrassment of unstable operation of cement enterprises.According to the adjustment of the business strategy of Hanjian Heshan’s three mergers and acquisitions,Hanjian Heshan’s mergers and acquisitions can be divided into three stages: the expansion stage of a single product structure,the upstream and downstream extension stage of the industrial chain and the stage of entering the environmental protection field.This paper finds that under the single-structure business model,the risk of impact on the company’s operation is very large,and after integrating into the diversified operation business,Hanjian Heshan’s business has begun to improve due to the cyclical changes in the cement industry.Among these three mergers and acquisitions,the positive promotion effect of mergers and acquisitions of a single product structure on enterprises is less than that of mergers and acquisitions carried out by industrial chain extension,and the positive effect of mergers and acquisitions for industrial chain extension is less than that brought about by entering the environmental protection field.The transition to a low-carbon,environmentallyfriendly business can help strengthen resilience and improve economic,environmental and social performance.Hanjian Heshan belongs to the first echelon of concrete pipe supply among the upstream enterprises in the cement industry,and has strong competitive strength,through the analysis of the causes and consequences of Hanjian Heshan’s green M&A,it can provide reference ideas for the transformation and development of green M&A of other heavy polluting enterprises in the cement industry.