Mergers and Acquisitions the Challenge of Sustainability for the Small Steel Companies in the Global Scenario

Abstract

Mergers and acquisitions have become one of the new trends among the steel industry. From 1997 on wards, several steel companies started to merge and acquire. In the past no one could think of mergers and acquisitions taking place in the heavy industry but based on financial performance, overcapacity and improving worldwide economy steel industry has started consolidating after a prolonged period. It has helped them eliminate duplication in making, accounting, procurement, logistics and research and development. Companies are trying to tap the new emerging market for their product and cheap market for resources. Almost 10 companies captured 30% of the total production after merger. This has created several treats and challenges for smaller companies to continue their operations. The research paper mainly stresses on the sustainability of small steel industries and the competition faced by them.