Environmental changes affect the merger and acquisition (m&a) strategy

Shougang development institute, a participant who told the first financial daily "reporter interview, in previous years, API 5L X65 Steel Pipe mergers and reorganization has become a trend, many steelmakers are looking for some object of restructuring, mainly in pursuit of yield, because" production work means strength ".

But now the situation has taken place great changes, high output is no longer a strong earnings performance, especially in the steel industry at present stage is not good, may become a new burden after restructuring to come over. Cisa figures show that in the first seven months of this year, the domestic large and medium-sized steel mills revenue grew by 1.02% year on year, astm a234 CS seamless elbow R=1.5D profits of 2.842 billion yuan, after the break even sales profit margin of 0.23%. Among them, part of the loss, high asset-liability ratio of enterprise financing difficulty increase.

"At this stage, baosteel restructuring mergers, because the environment didn't solve well." Mr Xu said.

Shougang has also have experience. "Shougang also acquired many companies a few years ago, at that time considered decisions are also necessary, but now shougang acquire some enterprise benefit is bad, xs long radius 90 degree welded carbon steel elbow such as the lack of money, shougang company in addition to its own funds to help it guaranteed loans to also go, anyway have to help." These people said.

Learned, subject to the existing environment, seamless steel tube manufacturers shougang will temporarily won't consider mergers and reorganization of other enterprises in the short term, "is now the hand of every enterprise development is good, such as flush with cash, then thinking about restructuring" according to the market situation.