2016-05-11

Zombie Mergers Hit A Wall Too

Zombie industry leaders are hopeful that mergers can solve excess capacity, since it is one of the better policies from their perspective, but mergers and acquisitions face their own hurdles.

Phoenix Financial News in the central set the tone for the disposal of "zombie companies" should be more mergers and acquisitions less after bankruptcy liquidation, according to "Economic Information Daily" informed that at present the relevant provinces, autonomous regions and the SASAC to develop coal , iron and steel resolve the overcapacity of the initial program focusing on promoting mergers and acquisitions to achieve industrial transformation and upgrading, to encourage regional, cross- industry , cross-ownership mergers and acquisitions, and to give financial, taxation, credit and other policy support.

Central Economic Work Conference last year put forward "to the production capacity," the goal, and made it clear that this process in order to reduce the unemployment problem requires disposal "zombie companies" should be more mergers and acquisitions less bankruptcy liquidation, after the ministries of documents are focused on this.

The central business forum at the beginning of the SASAC party secretary Zhang Yi said that to increase the mergers and acquisitions group level, and promote combination; promote specialization restructuring to industry leading enterprises rely on cooperation through equity, asset replacement, free of charge transfer, etc., to further strengthen the integration and homogenization of the business segments of industry consolidation. Meanwhile back to clean up "zombie companies" provides a timetable, and strive to use about three years to basically complete the main task, to complete the work by 2020 overall.

"Economic Information Daily" said that at present the relevant provinces, autonomous regions and the SASAC in the basic situation of iron and steel, coal enterprises thoroughly, based on the resolve to develop and submit a preliminary program of excess capacity, detailed the next few years to resolve the overcapacity objectives and tasks, goals down to work on local businesses and proposed timetable. After approval, production will go into full implementation period. Path from the operating point of view, to place most of the emphasis on driving capacity on mergers and acquisitions to achieve industrial transformation and upgrading, to encourage trans-regional, cross-ownership mergers and acquisitions, and to give financial, taxation, credit and other policy support.

But industry insiders believe, of the policy assists, is expected to usher in a new round of mergers and acquisitions boom. But it is worth noting that, trapped in the complaint, investors and the ownership transition, local government interests and other issues, some corporate mergers and acquisitions see slow progress and even stalled.
iFeng: 僵尸企业处理方案重点在兼并重组 给与多种政策支持

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