Category: Money Tips Date: 2006-07-02
Yesterday, the Baoshan Steel settled re-8. 3.0 billion capital injection to eight Baoshan Iron & Steel Group to become a branch in Xinjiang, Baosteel foreign mergers and acquisitions has taken substantial steps, this marked inter-provincial integration of the domestic steel industry has been the arrival of the tide? Baosteel What comes next target? The industry believes that the effective Baosteel and eight steel mergers and acquisitions will accelerate the pace of domestic mergers and acquisitions, but acquisitions are still guided by the government against the backdrop of a nationwide inter-provincial city of steel mergers and acquisitions will not be immediately taken.
Cross-regional mergers and acquisitions to enhance the competitiveness of steel prices
China's steel output of around 20% for several years to maintain the rapid growth of the world's largest steel producer and consumer. However, the trade that "profiteering" era has ended, the industrial structure adjustment will become the mainstream, in this "small profit" era, foreign capital began to implement the Chinese market penetration strategy, and this is the best way to penetrate low-cost expansion ─ ─ mergers and acquisitions. As a result, foreign attack that frequently appear in the domestic steel industry's market rumors, and continuously stimulate the domestic iron and steel enterprises sensitive "nerves." Baosteel Group Chairman Xu Yue Jiang pointed out that foreign investment has accelerated the pace of entering the China market, desire to re-demarcate the pattern of iron and steel enterprises.
Industry studies have also pointed out that the larger-scale iron and steel enterprises in China itself may be the world's leading iron and steel enterprises will not pose a significant threat to the high efficiency through the restructuring of industries are threatening, but also will greatly increase China's iron and steel enterprises in the global market the right to speak. China's domestic steel industry if you do not speed up the pace of mergers and to achieve industrial structure and technological upgrading, it will be difficult to adapt to the international market, a small number of oligopolistic competition, development trend.
To this end, our country's iron and steel industry development policy has been clearly will increase the degree of concentration of the industry as a target: by 2010, require the formation of 1-2 annual production capacity of more than 30 million tons of Iron and Steel Group, the top 10 corporate concentration reached 50%, in 2020 to reach 70%. Baosteel responsible person pointed out that by the year 2010 may be more than 30 million tons production capacity of more than Iron and Steel Group number will reach 4 or 5, the steel industry's competitiveness addition to the supply, the various factors in the formation of control of the market will play a leading role, China needs a more efficient and more control of the iron and steel enterprises. Baoshan Steel 8 M & A success, will undoubtedly accelerate China's iron and steel industry merger and reorganization process.
What conditions are M & A targets
After eight steel, Baosteel will be how to choose the next acquisition target? Industry research analysis, Baoshan Iron and Steel Group's acquisition targets are usually three-pronged choice: conditions for the regional advantages, product complementarities complementarity conditions and resources.
From the view of the above conditions, Shaoguan Iron & Steel, Fujian Sanming Iron and Steel, Hangzhou Iron & Steel, Nanjing Iron and Steel, Jinan Iron and Steel are close to the coast, with regional advantage. At the same time, near the western and northern parts of the regional iron and steel enterprises are distributed less, has a unique geographical advantages, such as the Jiuquan. Complementary conditions from the product perspective, Jinan Iron and Steel Company as the leading plate, products, and Baosteel Group complement each other well; Maanshan Iron & Steel shares the expertise of both the shortcomings of building materials, but also advantages, if you want to broaden the product line, Maanshan Iron and Steel Group, is a better choice; TISCO stainless steel as a sub-industry, leading enterprises, Baoshan Iron and Steel Group, also of the value of mergers and acquisitions.
In addition, in iron ore prices keep rising, seize resources, Baosteel Group has become a necessary choice. From this perspective, Xichang and Panzhihua region, heavy steel, Shanxi Wutai - Luan County area Taiyuan, Nanjing-Wuhu - Lu fir region, Maanshan Iron and Steel, Hangzhou Steel, Nanjing Steel, and having the Bayan Obo ore-clad steel such as Baosteel Group, the acquisition of high value.
The fact is, many options, Baosteel Group, plans to set up a factory in Zhanjiang, already present, the program has been submitted to the State Department, but because the state has adopted relevant policies, Baosteel Group, this plan can not proceed smoothly. It is understood that the planning capacity is 20 million tons, more than Baosteel Group in Shanghai scale. If you can Baosteel and Shaoguan Iron and Steel Holding Guangzhou Iron and Steel, and with the two joint venture steel mill Baosteel Zhanjiang steel mill would be the ideal choice.
