With the continuous change of the market environment, competition among enterprises has become increasingly fierce, and it is difficult for enterprises to gain advantages in the market by relying solely on their own development, which has led many enterprises to look to external expansion. As one of the important means of external expansion, continuous M&A can not only enhance the market competitiveness of enterprises, but also reduce the intensity of industry competition and promote the healthy development of the entire industry. For a long time, low industrial concentration has been a major obstacle to the development of China's steel industry. The National Development and Reform Commission proposed in the "Guidance Catalogue for Industrial Restructuring (2023 Edition)" that in order to build a modern industrial system with a solid core of real economy and strong competitiveness, it is necessary to take effective measures to promote the accelerated consolidation and reorganization of key industries such as steel. With the support of national policies and the continuous growth of market demand, M&A activities of steel enterprises have shown explosive growth. A group of steel enterprises represented by Baowu Steel Group have begun to achieve scale expansion and optimization of industrial layout through continuous M&A of multiple enterprises. The implementation of continuous M&A by steel enterprises can not only effectively improve the industrial concentration of the steel industry, but also has far-reaching significance for the overall stable operation of the national economy.
This thesis takes the continuous M&A of Baowu Steel Group as the research object, and explores the motivation and performance of Baowu Steel Group's continuous M&A based on the theory of economies of scale, synergistic effect theory, resource-based theory, etc. Firstly, this thesis reviews the continuous M&A of Baowu Steel Group from 2019 to 2022. Secondly, the thesis studies the motivation of Baowu Steel Group's continuous M&A and draws five major motivations for Baowu Steel Group's continuous M&A. Then, in order to better reflect the changes in the performance of Baowu Steel Group before and after the implementation of continuous M&A, this thesis utilizes Baowu Steel's financial and non-financial data from 2018 to 2023, and comprehensively adopts research methods such as event study, financial index method, economic value added method, and non-financial indicator method to comprehensively evaluate the capital market performance, financial performance, and non-financial performance generated by Baowu Steel Group's continuous M&A. Finally, the research conclusions and management implications are drawn, and the research deficiencies and prospects of this thesis are summarized.
The thesis found that based on government guidance and support, the pursuit of economies of scale, the enhancement of synergistic effects, the acquisition of customer resources, and the improvement of R&D capabilities, Baowu Steel Group experienced seven M&A from 2019 to 2022, including the mergers with Ma'anshan Steel, Taiyuan Steel, and Chongqing Steel. In terms of capital market performance, since all seven continuous M&A were completed through gratuitous transfers without involving the pricing of financial instruments, the capital market response was not positive. In terms of financial performance, after the implementation of continuous M&A, Baowu Steel Group's financial condition and operating results have been improved, asset management level has been relatively stable, and value creation ability has been significantly enhanced. In terms of non-financial performance, through the implementation of continuous M&A, Baowu Steel Group has promoted the process of building a diversified industrial structure, enhanced technological research and development capabilities, achieved the development of domestic and foreign markets, and optimized internal business processes. Based on the research conclusions, this thesis draws management implications such as enterprises should comply with national policy guidance, rationally select M&A targets, focus on the main business to implement M&A, and achieve synergies through integration mechanisms. The research findings of this thesis enrich the case studies on the motivation and performance of continuous M&A of steel enterprises, provide investors with a reference for effectively evaluating the investment value of continuous mergers and acquisitions enterprises, and provide experience for steel enterprises planning to implement serial M&A.
Key words: Baowu Steel Group; Continuous M&A; M&A Motivation; M&A Performance
谷歌
火狐
