On the evening of December 7, Tianyua Hospital announced that it planned to acquire the controlling shareholder of ChemChina for 6.641 billion yuan, of which the most important one was undoubtedly the acquisition of the holding company of the German centenary enterprise KraussMaffei Global, the transaction price of 5.967 billion yuan, accounting for 89.85% of the total purchase price ratio.
In the eyes of investors, state-owned enterprises rely on resources and low-cost financing ability to gain a competitive advantage, but most of the real competitiveness is inferior to private-owned enterprises.And among the many state-owned enterprises, China Chemical Industry seems to be unique among the board of directors Ren Jianxin, led by a small chemical cleaning company started, through the fight in the market and continue to mergers and acquisitions, the growth of Fortune 500 companies.
An important way for ChemChina to grow rapidly is to acquire oversea companies and then take advantage of the advanced technology and excellent management team of oversea enterprises to capture the market in the country and to seize the market. After this transaction is completed, it will become the largest shareholder of listed companies , This time more like the Group's chemical companies into KraussMaffei, thereby expanding the influence of the domestic market.
Swallowing KraussMaffei
According to the announcement, Tihuahua intends to issue 100% equity of the equipment it holds in Luxembourg to Equity Equipment Global, and issue shares to Guilin Rubber Machinery and Yiyang Rubber Machinery to purchase the major operating assets and liabilities held by it and to Sanming Machine and China Rubber controlled the issuance of shares to buy their holdings of land, real estate, major equipment and other assets.The total purchase price of assets was 6.641 billion yuan.At the same time, the company plans to raise no more than 1.226 billion yuan of matching funds.
Among them, the issuance of shares to buy assets of the issue price of 12.93 yuan / share, to 66.41 billion yuan, a total of 514 million shares required to issue counterparties, of which global equipment for the purchase price of 5.967 billion yuan, about 461 million to be issued share.
In addition, Tin Wah Hospital will also raise 1.226 billion yuan of matching funds, due to the issue price is not determined, if calculated at 12.93 yuan / share, about to issue 94,818,300 shares, while the acquisition and fixed-increase is completed, Tin Wah Hospital, the total share capital from 411 million shares increased to about 1.02 billion shares, equipped with global companies will become the largest shareholder.
In April 2016, ChemChina acquired a 100% stake in KM Group (KraussMaffei) for 925 million euros (approximately 7.118 billion yuan) by equipping Luxemburg with an uncontrolled acquisition. After the acquisition was completed , Equipped with Luxembourg as a wholly owned subsidiary of Tin Wah Hospital, KraussMaffei will also be merged into Tin Wah Hospital.
It is reported that KraussMaffei has 178 years of history, is the world's leading rubber and plastics machinery manufacturers, known as the industry's Rolls-Royce, which owns Krauss Maffei (Krauss Maffei) The three brands Krauss Maffei Berstorff and Netstal cover a full range of processes for injection molding, extrusion and reaction technology for the automotive, packaging, medical and construction industries Industry, and electrical and electronic products and home appliances manufacturers to provide services.
It is noteworthy that, in order to ensure that the profitability of the underlying reorganization of the underlying assets is true and reliable, equipped with a global commitment to equip Luxembourg with a net profit of not less than 30,849,000 euros, 50,049,000 euros and 52,021,000 euros in 2018 and 2019. Can be completed by December 31, 2017, with a commitment to be postponed until 2018 2019 and 2020, with no change in commitments in the first two years and a guaranteed net profit of not less than 605.090 billion euros in 2020.
New leader in chemical machinery to create the benchmark 4.0 industry
People who know the history of Chinese chemical industry know that the company has always had the tradition of mergers and acquisitions. In 1984, Ren Jianxin, as a secretary of the Communist Youth League, went down to the sea as a member of the Communist Youth League with seven mortal mortgages and started a business in Lanzhou. After years of struggle, Lansing Blue A-share cleaning listing. Subsequently, Ren Jianxin take the detached from the state-owned enterprises as a breakthrough in the acquisition of 107 state-owned chemical companies, the Bluestar developed into a strong domestic chemical raw materials leading enterprises, and Blue Star-based, the establishment of China Chemical Group.
Overseas mergers and acquisitions market, Ren Jianxin also shot extraordinary in 2006, Bluestar 400000000 euros acquisition of the world's second largest methionine producer France 100% stake in Adisseo Group in June 2017, China Chemical for 44 billion US dollars to acquire the world Syngenta, the largest pesticide company, is the largest overseas acquisition to date in China.
Tianhua hospital acquisition of KraussMaffei, can be said to imitate the acquisition of Adamsu Bluestar new material routine, the first acquisition by the Group of companies overseas, and then into the domestic listed companies. The quality of foreign assets and performance of good business, and domestic High valuation of the capital market, so that comprehensive utilization of domestic and foreign resources.
In the planning of China's chemical industry, Tianhua Hospital should be the listing platform of chemical machinery of the Group. Tianhua Hospital mainly produces and sells chemical equipment such as drying equipment, electrochemical equipment and waste heat boilers. KraussMaffei Main Rubber & Plastics Machinery, and the acquisition of assets, Guilin Rubber Machine, Yiyang Rubber Main rubber machinery, Sanming machine and the main control of China Chemical Machinery.
After the completion of the acquisition, the above-mentioned domestic enterprises can take advantage of KraussMufi's sales network in the global market to expand the product sales market and have the opportunity to learn KraussMaffei's advanced management philosophy and mode of operation to enhance the operation and management efficiency. , KraussMaffei can also obtain these domestic sales channels, expanding KraussMaffei's domestic market share.
In addition, China is the world's largest manufacturing base, KraussMaffei can be set up factories in China, expanding corporate productivity and reduce production costs.In early 2014, Adisseo in Nanjing built a 70,000 tons capacity liquid methionine factory , Has been successfully operating and profitable.From Adisseo's development path, KraussMaffei in the future is likely to invest and build factories in the country.
Ren Jianxin said: "ChemChina will accelerate its product portfolio and business integration by taking the 178-year-old leading manufacturer of rubber and plastics machinery and take the lead in achieving the goal of" Made in China 2025 ".
With many years of M & A experience, Ren Jianxin can be said that China's low-key 'mergers and acquisitions'. Adisseo well after the acquisition, I believe KraussMaffei and domestic enterprises will be relatively smooth integration.
Frank Stieler, CEO of KraussMaffei, said: "We are trusted by ChemChina as the leading player in the consolidation. This is an exciting experience. I believe KraussMaffei will help ChemChina to successfully implement the ' Made in China 2025 'program of action, perhaps in the near future, German car tires will be more produced in China equipment.
At present, China and Germany are the main push, respectively, 'Made in China 2025' and 'Industry 4.0', the merger is an important cooperation between the two strategies.Maybe after the acquisition of KraussMaffei, China Chemical has the opportunity to create Tianhua Hospital 'Made in China 2025' and 'Industry 4.0' benchmarking firm.