Chinese auto parts companies frequently perform overseas mergers and acquisitions. Experts have different interpretations. People involved in the M&A industry believe that it is a global business layout requirement. Some experts believe that this is only a capital operation game.
Although experts have shouted that the overseas mergers and acquisitions of Chinese auto parts and components have already taken place in Kyrgyzstan, the case of China's spare parts acquisitions continued to increase sharply.
At the 3rd Global Auto Parts Industry Summit 2011 held during Shanghai Auto Show, a KPMG senior person in charge of mergers and acquisitions disclosed that recently many auto parts companies in China have entrusted them with finding overseas acquisition targets. According to reports, nearly half of China's private companies, including auto makers, intend to achieve business growth through mergers and acquisitions in the next three years, and a quarter of respondents plan to raise funds through the stock market.
Parts companies urgently go to sea mergers and acquisitions
Since April, overseas mergers and acquisitions of Chinese auto parts have been concentrated.
On April 8th, AVIC Motor Company and Beijing Yizhuang International held a signing ceremony for the joint acquisition of Nexteer Automotive Systems Corporation and the establishment of China headquarters in Beijing Development Zone in Yizhuang Development Zone, which cost US$420 million so far. The largest overseas acquisition of the parts and components industry ended.
On April 26th, an auto electronic parts manufacturing company named Ningbo Joyson Investment Group Co., Ltd. acquired the German Purui company’s equity project and was approved by the National Development and Reform Commission. Ningbo Zhisheng Vice President Guo Zhiming confirmed the news to the reporter and said that he must obtain approval from the Ministry of Commerce and the State Administration of Foreign Exchange in order to complete the acquisition process.
Preh is an automotive parts supplier based in Bavaria, Germany. It develops and manufactures automotive electronics components such as driving control systems, air conditioning control systems, electronic control units and sensor systems. Its sales in 2010 were 350 million euros. "This time, they all won a 74.9% stake in Purui, including many of its key technologies." Guo Zhiming said.
On April 22, Zhao Zhijun, chairman of Nanyang Atelier Automobile Shock Absorber Co., Ltd., who had just returned from Italy, announced the successful acquisition of WayAssauto, Europe’s largest car shock absorber company. “In the future, we will enter the European market for our products!†The company in 1951 was a manufacturer of shock absorbers for mid- to high-end cars. The WayAssauto company in Italy was the largest manufacturer of shock absorbers in Europe and the third largest in the world. Its high-end customers spread all over the world, but in recent years, due to the market Inaccurate positioning and operational difficulties were declared by local courts in the judicial auction process in 2010.
Chen Wenkai said, "China's auto parts companies have entered an outbreak of overseas mergers and acquisitions. It can be predicted that this overseas merger and acquisition trend will continue."
Capital operation or business layout?
Chinese auto parts companies frequently perform overseas mergers and acquisitions. Experts have different interpretations. People involved in the M&A industry believe that it is a global business layout requirement. Some experts believe that this is only a capital operation game.
The above-mentioned KPMG executives stated that “From the perspective of global procurement in the automotive industry chain, the auto giant’s business is global, which requires that auto parts companies’ businesses must also be global, which can reduce costs, which is the trend of the times. "."
Chen Wenkai believes that "core technology has always been a short board for auto parts in China. Overseas mergers and acquisitions are the shortest way to resolve this short board, but the question is how local companies convert acquired technology into their own technology." According to Chen Wenkai, The overseas acquisition of Chinese auto parts is in fact to meet the needs of capital operation. After acquiring overseas parts and components enterprises, it acquires high technology. First, it can receive government land and financial subsidies through local production, and second, this part of assets can be injected into listed companies. , increase financing chips.
Kyoto Tianhua's survey also showed that 45% of Chinese companies planned to implement mergers and acquisitions, compared with 26% a year ago; 24% of respondents plan to raise funds through public offerings within the next 3 years. This figure was only 11% a year ago.
Analysts pointed out that from the current case of mergers and acquisitions, Ningbo Changsheng took over the German Preh company and reorganized the company. The company plans to inject the assets into the listed company within three years. The concept of overseas assets will benefit the company. Backdoor listing was completed; NavInfo's acquisition of Mapscape, a Dutch electronic map service provider, became an important investment concept for NavInfo in the capital market.
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