A Study on the Performance of Mergers and Acquisitions in the Context of State-Owned Enterprise Reform: The Case of Ansteel and Benxi Steel

Abstract

The State-owned Assets Supervision and Administration Commission emphasizes that promoting the reorganization of state-owned enterprises (SOEs) can focus their advantageous resources, which plays a positive role in addressing issues such as the uneven distribution of state-owned capital, inefficient resource allocation, and homogenized development. This paper, set against the backdrop of SOE reform and central enterprise reorganization, uses the merger and reorganization event of Ansteel Group and Benxi Steel Group as a case study to investigate how central enterprise reorganization can improve the performance of central enterprises, based on the theory of synergistic effects. The study finds that under the theory of synergistic effects, after the reorganization of Ansteel Group and Benxi Steel Group, the operational, financial, and managerial synergistic effects of Ansteel Group continue to be realized, thereby enhancing the performance level of Ansteel Group. This paper aims to demonstrate the improvement of enterprise performance through central enterprise reorganization and calls on other central enterprises to actively respond to the national requirements for mergers and reorganizations, offering suggestions for subsequent reorganizations of central enterprises.