Ma Shuping, Enterprise Research Institute, the DRC

Research Report No 126, 2013

Abstract:

Alliance M&A is the main form of M&As in Japan’s iron and steel industry, and it is entirely different from the M&A in the capital market. Alliance M&A can be divided into soft alliance M&A (the Nippon Steel Corp model) and competitive alliance M&A (the JFE Steel Corp model).

The cooperation system and coordinated government-enterprise relationship are important conditions for the alliance M&A model. M&As in Japan’s iron and steel industry have the following characteristics: first, there is much government intervention in the early stage of M&A and restructuring; second, M&A of domestic enterprises and third, enterprises carry out M&As with the aim of long-term cooperation in business operations, technologies and production.

China’s iron and steel industry is plagued by serious overcapacity and is in the critical phase of restructuring, and the M&A model and experience from the Japanese iron and steel industry will be helpful for the development of China’s iron and steel industry.