"Art of War" said: "soldiers uncertain situation, the water is uncertain shape," homeopathy whom! China announced several "autonomous development, engage in mergers and acquisitions," the Sany Heavy Industry Co., Ltd. on January 21, 2012, joint CITIC Industrial Fund jointly acquire the world's first brand of concrete machinery - Germany Putzmeister Holding Co. 100% stake in the company, which has become the first case of Sany overseas acquisitions.
Putzmeister founded in 1958, the industry has "elephant" reputation, has won the global concrete machinery sales champion throne for 20 years. In the early 1990s, when Sany entered the construction machinery industry, on the choice of the time in the world top three - Putzmeister, Schwing (Schwing), Safa (CIFA) as role models.
Safa had been into in the re-Kona bag. And the Trinity acquisition clearly is a typical "apprentice" to "master" of transcendence. "This event also marks a major turning point occurred Sany overseas strategy, is a major step forward three international strategy." The new director of the Institute of Transnational Corporations Wang Yue of the "foreign management" means.
In fact, Chinese enterprises' overseas M & A failure rate has been highest in the world in the first, after TCL acquired Thomson, Lenovo's acquisition of IBM's PC business, etc., have been criticized. So, Sany this acquisition, whether exceptions become a classic success story? The acquisition of Chinese enterprises overseas mergers and acquisitions which reference and enlightenment?
"Dragon and Elephant"
"I was on January 22 that the news, and very abrupt!" A machinery industry insider "foreign management," said. Surprised reason: he was waiting for the results, "elephant" will be held takeover bid, actually I heard not held, directly Putzmeister Sany announced for the final winner. And Sany had no overseas acquisitions initiatives. In 2010 China CEO Forum, Sany executives have publicly stated that the Chinese people, mergers or lack of experience, one in three overseas factories effective way to avoid management, cultural and legal pitfalls of overseas mergers and acquisitions.
According to the insiders, to participate in the bidding, "Elephant" was also the world of construction machinery giant Caterpillar Group and Zoomlion, several well-known engineering machinery manufacturing giant. The Zoomlion long before December 2011 has got Reform Commission approved its merger Putzmeister "flagging" - according to the relevant regulations, Chinese enterprises overseas to avoid vicious competition for domestic companies in the same industry When an overseas company mergers and acquisitions with, only one company can obtain NDRC approval.
Sany display what magic, and finally to this first initiative investment giant elephant pregnant? Xiang Wenbo, president of Sany explain (microblogging) is "more than a decade of cordial love," the lightning success of the acquisition. Putzmeister founder Karl Schlecht said:. "Less than four weeks ago, I received Mr. Sany Chairman Liang Wengen mail, two weeks after we met a few hours to reach a tacit understanding" in order to express cooperation They, the two sides also exchanged watches, as "tokens" token.
This year Karl Schlecht 80-year-old made the move, first, because their children have little interest to the heir, two in recent years, such as Sany and other Chinese construction machinery industry to enhance the overall innovation capability, squeezing the "Elephant" and other international brand profit margins. More deadly because of the debt crisis, weak collective management of these enterprises, market prospects bleak.
Sany acquisition Putzmeister, some experts called "Tunxiang", some experts called "dragon swallow like." The world's longest boom pump 86 meters, the world's first fully hydraulic grader, the world's largest tonnage excavators ...... Sany create a number of the world, from small towns then transformed into a global engineering business mechanical pivotal dragon.
"After this acquisition, we step to stand on the top of the industry, can not be shaken!" Xiang Wenbo spirited Sany President Xiang Wenbo as described in the "acquisition of elephants, at least the process of internationalization of a shortened five to three 10 years "after the completion of the acquisition, all have Putzmeister Sany technology, patents, and its worldwide base and sales system; Putzmeister Sany will open up marketing system, and lower production costs from the Sany global procurement chain. Visible, the acquisition, the two sides complement each other, it is expected to achieve "Dragon and Elephant" situation.
Leading European hunters tide?
"Sany This strategic shift is in line with the general trend of industry globalization has important implications for the global layout of the Chinese machinery industry." Wang Yue said. Long-term studies in international business, he always thought that "compared to emerging industries, investment in traditional industries should be more developed markets use mergers and acquisitions", according to the survey research center, the traditional industries in developed markets tend to overcapacity, if Chinese companies traditional industries also went abroad to build a new plant, to attract local business people, it is easy to conflict with local business and government.
Wang Yue said the global strategic layout: the acquisition of Putzmeister Sany, Zoomlion acquired Safa, while Xugong is also currently planning to Schwing acquisitions. Before 2008, the global concrete machinery former three, all are expected to become China's enterprises' items.
Thirty-one acquisition of Germany's "Elephant" awful known as "by far the biggest German trade a" merger, it seems just the beginning. "Europe 'buy the dips' Go," the idea being fermentation temperature: 2012 much as the trend of Chinese enterprises overseas M & A feast - Guangxi Liugong acquisition Poland, Eastern Europe's largest construction machinery enterprises HSW construction machinery business unit, to get the world's Shandong Heavy Industry luxury yacht giant Italian 75% controlling stake in Ferretti Group, State Grid acquired 21.35% stake in Portuguese power, Portugal Three Gorges Group shares power ......
Even German Chancellor Angela Merkel also borrow "Sany acquisition 'elephant' 'in the east, on February 2 visit to China, to fall into the debt crisis of the euro zone acted as a" lobbyist ", hoping to open Chinese and European companies "The new step closer bilateral cooperation."
In Germany to study and research for many years Wang Yue, has maintained communication with some traditional German machinery enterprises. Sany acquisition of Germany's "Elephant", the letter calls these companies have made, some Chinese companies hope to contact buyers. Or wash them in the European debt crisis, business in trouble, the presence or successors, strong shareholder wishes to sell.
It looks news is excellent, but the acquisition of Putzmeister Sany, Wang Yue think which also conveys a lot of information about the current Chinese enterprises' overseas M & A risks.
Sany lightning two weeks to complete the acquisition, local businesses from Germany and the news media, also confirmed that there is no inkling before. According to German media reports, the price also includes the "elephant" in a series of debt. If thirty-one not come much higher than the price of other competitors, "elephant" should not bidding will be canceled. Furthermore, in the absence of Sany NDRC "flagging," the premise for the acquisition of the German "elephant" may challenge the approval of regulators. And after the takeover news broke, Putzmeister hundreds of employees to protest in front of the company headquarters, although Xiang Wenbo has said it would not dismiss any employee Putzmeister, but the so-called merger easily integrated hard Subsequent cultural integration of the two companies is still worrying.
Of course, it is certain that the overseas merger Sany and CITIC Industrial Fund's work together. One of the important reasons summarized failure rate of Chinese overseas acquisitions in the past is the "acquisition approach clumsy" mature PE cross-border acquisitions have professional knowledge and professional skills, joint acquisition of industrial capital and PE, or will become the mainstream of future cross-border acquisitions .
Wang Yue also stressed that, from a variety of performance, the debt crisis has not the top, there is a sense of European investments, "Snapdragon" feeling. Moreover, the operation and management of Chinese enterprises in Europe a huge difference when making acquisition decisions to multi-enterprise measure. Although faced with the current euro exchange rate falling to attract favorable, but to see the yuan upward, Chinese enterprises must consider the risk of exchange rate fluctuations in reverse. Do not forget the last century, Japanese companies overseas acquisition spree examples of failure due to the exchange rate.
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