Research And Deployment Of The State Council To Promote Merger And Reorganization Of Enterprises

Wen Jiabao, premier of the State Council, chaired the executive meeting of the State Council on June 30th to study and promote the merger and reorganization of enterprises. In this regard, insiders said that the relevant deployment of the State Council was very pertinent and helped to remove some obstacles that hindered the merger and reorganization of enterprises. In this context, the restructuring opportunities of related industries such as iron and steel and automobiles were worth looking forward to.

The executive meeting of the State Council has called for the abolition of all kinds of provisions that are not conducive to merger and reorganization of enterprises and impeding fair competition, and resolutely abolish the regulations of local enterprises that restrict the implementation of annexation and reorganization of local enterprises by foreign enterprises.

Regarding this, the Ministry of industry and information technology said in an interview with Shanghai Securities News: "(State Council) the research and deployment of this work is to implement the merger of the ten major industries in the revitalization plan.

Regarding this, the relevant people of the Ministry of industry and Commerce said that this view is incorrect. The implementation of the revitalization plan will span from "11th Five-Year" to "12th Five-Year", which will have a profound impact on the upgrading of relevant industries and the adjustment of the economic structure.

The official also said that in the near future, the Ministry of industry and Commerce will carry out a mid-term assessment of the implementation of the ten major industrial revitalization plans, so as to better implement the planning objectives during the "12th Five-Year" period.

Reporters found that in the revitalization plan of different industries, "merger and reorganization" is an important part.

For example, the adjustment and revitalization plan of the automobile industry is clear. Through mergers and acquisitions, 2-3 large automobile enterprise groups with over 2 million production and marketing scale and 4-5 auto production enterprises with over 1 million production and sales scale have been formed, and the number of automobile enterprise groups that account for more than 90% of the market share is reduced from 14 to 10.

The plan also made it clear that large auto enterprises such as FAW, Dongfeng, SAIC and Changan will implement mergers and acquisitions nationwide.

Support for Beiqi, Guangzhou automobile, Chery, heavy truck and other auto enterprises to implement regional mergers and acquisitions.

And iron and steel,

The executive session of the State Council, held in June 30th, also made it clear that "promoting enterprise merger and reorganization must insist on giving full play to the main role of enterprises" and "giving full play to the role of capital market in promoting enterprise restructuring."

In this regard, market participants believe that under the vigorous promotion of the State Council, other policy support for merger and reorganization will also be put in place as soon as possible.

In fact, in July 2nd, the Ministry of industry and Commerce issued a clear document that it would use financial and credit funds to support the merger and reorganization of Eastern Textile Enterprises and the Midwest and Northeast China, and speed up the pace of textile industry upgrading.