Market downturn is conducive to mergers and reorganizations, is it a good opportunity for the cement industry to carry out mergers and reorganizations? How to grasp the timing of industry mergers and acquisitions?
Recently, China Cement Network communicated with Dr. Ma Weiping, former chairman and president of Yaobai Cement Group. Ma Weiping said that now is an opportunity for mergers and acquisitions, but the opportunity may not yet come.
"Many people like to compare now with 15 or 16 years, and I think that time should be a good opportunity for mergers and acquisitions." Ma Weiping pointed out that "because the whole industry was losing money at that time, many enterprises could not survive, the efficiency was extremely low, cash flow and other aspects were very poor, which I think is a better M & a market."
Since then, the cement industry has experienced vigorous development, and the profits of the industry have reached a record high. At present, the assets and liabilities of many enterprises are relatively healthy, and the cash flow on account is still relatively abundant. Therefore, Ma Weiping pointed out that many enterprises may not have strong demands for mergers or mergers nowadays.
Ma Weiping said that the cost of acquisition and merger is still high, looking forward to the future, with the development of the industry, the time for merger and reorganization may become mature. In addition, for state-owned enterprises, the process of merger and reorganization may involve a certain loss of state-owned assets, which needs careful consideration.
