Consolidation has a better chance of delivering on its promise if the whole ends up being greater than the sum of its parts. To use our embedded media player, please install the latest version of Macromedia Flash Player.  Download | Subscribe:  Email |  iTunes |  RSS (What is RSS?)  Matchmaking has never been easy. People who seem meant for each other in theory often turn out to be incompatible when they actually get together. The same dilemma people face when they’re looking for romance may also be true for steel companies. Merger and acquisition (M&A) deals in the steel industry have been enjoying something of a boom lately — both in their number and scale. Before companies can join forces, however, they need to determine whether they fit. Different countries and regions may pose different challenges for integration, and bigger may not always be better. Consolidation has a better chance of delivering on its promise if the whole ends up being greater than the sum of its parts.
Highlights: - What are some of the characteristics that help to distinguish the steel industry? Why, for instance, do margins seem to be so tight, or why do steel companies often seem to be making decisions on imperfect data? (1:51)
- What principal benefits does consolidation offer steel companies? What’s in it for smaller companies? (8:43)
- What is the One Mill model, and how can it help streamline operations for a newly consolidated company? How can the model also expose problems capable of disrupting the flow of work, materials and information? (24:18)
- What would the impact be on the industry if Chinese steel companies become more competitive? (30:42)
Guests:
John Hung, partner and China Manufacturing Industry leader, Deloitte Touche Tohmatsu CPA Ltd.
Daniel Schweller, partner and Global Steel Industry M&A leader, Deloitte & Touche LLP
Nick Sowar, partner and Global Steel Industry leader, Deloitte & Touche LLP Related Content:
Transcript: Forging a New Identity: Why Steel Companies Gain From Consolidation
Article: Will the Deal Really Deliver?
Book: M&A Lies (And Why They're Sometimes True)
Report: Innovation in Emerging Markets: 2008 Annual Study
Overview: Process & Industrial Products Industry
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