The hottest overseas M & a strategy is mature. XCM

2022-09-21
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When the overseas M & a strategy is mature, XCMG curve purchases bonds and shares in schweiying

when the overseas M & a strategy is mature, XCMG curve purchases bonds and shares in schweiying

China Construction machinery information

Guide: the plight of European banks is gradually becoming an opportunity for mergers and acquisitions of Chinese enterprises. Chinese enterprises can first purchase the debt of target enterprises from banks for restructuring, so as to reduce the acquisition cost. This Friday, the Spanish financial system will usher in a key test, and Germany is eager for Spain to solve

the plight of European banks is gradually becoming an opportunity for Chinese enterprises to invest in mergers and acquisitions. Chinese enterprises can first purchase the debt of target enterprises from banks for restructuring, so as to reduce the acquisition cost

this Friday, the Spanish financial system will usher in a key test, and Germany is eager for Spain to solve the financing problem. According to the latest statistics of the bank for International Settlements, Germany currently has the highest exposure to Spain among European countries, reaching US $139.9 billion, of which about 45.9 billion are Spanish banks. At the same time, the German banking system still holds a large number of high-risk Spanish financial institutions and commercial real estate claims

"at present, banks hope to recover more loans rather than make additional loans. This is actually a good opportunity for Chinese enterprises to make mergers and acquisitions in Europe." On September 25, Zhang huanping, founder and managing director of European consulting gmbh Co. beratungs kg, said in an interview with this newspaper

Germany Eurasia consulting is the M & a consultant of XCMG group's acquisition of 52% shares of Germany schweiying not long ago. Zhang huanping revealed that the key to the success of the case lies in XCMG's reasonable restructuring of Shi Weiying's external bank debt

restructuring bank debt to reduce acquisition costs

the case of XCMG group's acquisition of German machinery company schweiying was settled on July 6 this year, and XCMG will own 52% of schweiying Co., Ltd. At that time, XCMG and Shi Weiying were quite low-key, and the delivery price and financing details were not disclosed

according to Wang Min, chairman of XCMG group, the transaction price is "not expensive, very cheap"

it was learned that XCMG group reached an agreement with the bank as the creditor of schweiying to restructure the original schweiying debt worth 280million euros, reducing the final transaction price

at the beginning of this year, Sany announced that it would invest 360million euros to acquire all the shares of German concrete pump manufacturer Putzmeister. Earlier, Zoomlion, together with its strategic investors, invested 271million euros to acquire all the equity of Italian CIFA company, a concrete machinery manufacturer

schweiying, located in the small town of Arne, Ruhr district, Germany, which can ensure the installation in a horizontal position, is a family business with a history of nearly 80 years, with a complete set of concrete machinery and equipment, but its external debt is too much, which affects its financing ability

it is reported that during the transaction, XCMG and schweiying established a new joint venture as the parent company, purchased the creditor's rights of the former schweiying company originally in the hands of the bank, and fully controlled the latter

after this operation, schweiying, as a subsidiary, has less than 100million euros in external bank liabilities. As a result, after XCMG became the controlling shareholder of Shi Weiying at a relatively low cost, the external debt ratio of the latter also decreased significantly, killing two birds with one stone

although XCMG has sufficient self owned funds, it still chose to raise funds from foreign banks in this case, mainly for capital increase of schweiying company and debt restructuring. Zhang huanping said that at present, foreign banks have a great demand for lenders with good credit qualifications

cooperation with M & A objects is mutually beneficial

this is the third time XCMG group has made M & A in the European market. Previously, XCMG successfully acquired ft (fluitronics) of Germany and AMCA of the Netherlands, and comprehensively launched the globalization strategy in the markets it wants to enter and the markets it hopes to grow

as the exclusive M & a consultant of these businesses, Zhang huanping said that he deeply felt that XCMG's overseas M & a capability was constantly improving over the past few years: "in terms of overseas M & A, if XCMG was just a toddler at first, it is now an expert full of confidence, with a strong M & a team and rich experience."

"XCMG group, as the controlling shareholder, accounts for 52% of Shi Weiying's shares this time, and all operations are designed with the help of CRT after careful experiments." Zhang huanping said that XCMG believes that it does not have enough experience and ability in managing large foreign machinery companies, so it still hopes that the Shi Weiying family as its management partner will jointly control the new enterprise. Here, it also has the intention to use equity to stabilize the management structure and jointly undertake business risks

XCMG also chose to retain 30% of the original shareholder's equity to achieve a smooth transition when it previously acquired ft, a small-scale enterprise with a sales volume of 20million euros

Zhang huanping also revealed that the agreement between XCMG group and Shi Weiying to establish a new joint venture in China to engage in the production of concrete products is also under negotiation

"this is actually a common practice of Chinese enterprises in overseas mergers and acquisitions. Through a new joint venture, the foreign party's idea of entering the Chinese market can be realized. At the same time, future technology transfer can also be carried out through this company, which is a mutually beneficial practice." He said

however, he did not disclose the specific equity distribution and other details of the joint venture at present

according to previous media reports, in the new joint venture, XCMG may take shares with existing assets, while Shi Weiying will take shares with technology, and XCMG will still be the controlling shareholder

behind the low-key is ambitious strategic planning. Wang Min, chairman of XCMG group, said at the delivery ceremony of the Shi Weiying project that XCMG would provide more than 2000 jobs in Europe by 2015, with total sales of more than 2billion euros

Zhang huanping revealed that XCMG only took half a year from hiring Eurasian consultants to contact Shi Weiying to the final signing, including due diligence and negotiation with shareholders and creditors

"at present, the European debt crisis has caused the market downturn and the bottleneck of bank financing. European manufacturing enterprises, especially small and medium-sized family enterprises with sales of tens of millions to hundreds of millions of euros, are difficult to obtain loans and have a strong willingness to sell. We believe that there will be many large-scale Chinese European M & A cases in recent years." He said

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