industry consolidation to accelerate the rise of cross-border mergers and acquisitions

- Jul 31, 2017-

Recently, the first half of 2017 new energy vehicles in the field of mergers and acquisitions in the acquisition of the incident learned that the first half of the new energy vehicles mergers and acquisitions event nearly 20, in addition to the acquisition of Brilliance Gold Cup Renault, the other mergers and acquisitions Case involved a larger amount.


From the merger and acquisition type of view, the first half of 2017 new energy vehicles mergers and acquisitions events are divided into three categories: the first category is the business chain to the upstream and downstream expansion and mergers and acquisitions, such as the acquisition of the United States and Germany, Optoelectronics acquisition Shenlong bus, Kang Sheng shares acquisition of Yantai Shu Chi and a plant in a.


The second category is the hope that enterprises through horizontal mergers and acquisitions way, enrich their product line, such as Zhuhai Yinlong acquisition of Lanzhou Yutong, Wei Ma car acquisition of Dalian Yellow Sea.


The third category is for foreign companies to better layout of the Chinese auto market, or domestic enterprises in the layout of the overseas market and cross-border mergers and acquisitions, on behalf of the acquisition of Brunei Gold Cup, Geely acquisition of Proton and so on.


Overall, the new energy vehicle industry is accelerating the integration of the new energy automotive industry, and cross-border mergers and acquisitions have gradually increased, mainly domestic independent car enterprises to achieve "going out" strategy for cross-border mergers and acquisitions, and Cross - border mergers and acquisitions by foreign companies for the layout of the Chinese market.


According to incomplete statistics found that since 2017, domestic enterprises in overseas investment in auto and auto parts nearly 100 billion yuan. Among them, Geely Automobile in the first half of this year, the acquisition of Proton cars, lotus cars, flying cars three overseas companies.


The Gross Industrial Research Institute (GGII) believes that with the substantial decline in subsidies, the new energy automotive industry will accelerate the integration of enterprise phase out further intensified, and the new energy automotive industry, "Matthew effect" is also gradually highlighted. The future, "the weak weaker, strong Hengqiang" trend will be more obvious.


Renault 1 yuan acquisition of Brilliance Jinbei 49% stake


Renault 1 yuan acquisition of Brilliance Jinbei 49% stake, a huge gap between the value of the acquisition so that the whole brush over the entire car circle.


Brilliance Jinbei mainly engaged in light passenger cars and auto parts manufacturing and sales, was the domestic light industry leading enterprises. However, in recent years the influence and sales of Brilliance Jinbei decline year by year, for many years of losses. According to the data show that in 1992 the listing of the Jinbei car, due to poor performance, in the past 10 years two into two ST list.


Reynolds is experienced in the field of light commercial vehicles, with Nissan, Daimler, Europe, and so have a cooperative relationship, is the need to vigorously expand China's light commercial vehicle market. To this end, Brilliance Jin Cup hope that through the Renault comprehensive development of light commercial vehicle market potential, to achieve profitability.


In fact, Shenyang Jinbei 1 yuan transfer of shares of the drama recently staged once. June 23, Brilliance China to 1 yuan price from the hands of Jinbei car purchased Shenyang Jinbei Automobile 39.1 stake. After the transfer, Shenyang Jinbei became a wholly owned subsidiary of Brilliance China.


Shenyang Jinbei (that is, Brilliance Jinbei) performance continued to slump, is the two can be 1 yuan for equity transfer of the important reasons. The industry believes that Renault 1 yuan acquisition of Brilliance Jinbei, only the first joint venture between the two sides.


Golden Horse shares 11.6 billion acquisition of Zhongtai Automobile


Looking back on the way the public car market, can be described as twists and turns.


As early as March 2016, Kinmen and Matsu shares will be known as 11.6 billion acquisition of Zhongtai Automobile 100% stake. But the acquisition of a case, they suffered the Shenzhen Stock Exchange's inquiry, was once terminated the reorganization.


Until June 7 this year, Kinmen and Matsu shares referred to the official change for the public Thai car, which lasted more than a year of the acquisition was able to come to an end.


At the same time, Kinmen and Matsu shares of the main business will change, the vehicle business and new energy automotive business has become the main body of the future development of listed companies.


It is true that the acquisition of Zhongtai Automobile by Kinmen and Matsu shares can be seen as an extension of the industrial structure that parts manufacturers extend to the field of vehicle manufacturing, especially the new energy automotive industry. From another point of view, the public Thai car through the acquisition of the case to achieve a curve listed, but also through the listing and financing to further improve its product mix and market layout, in order to gain more sales.


Huatai acquired 21.27% stake in Shuguang shares


Capital market has always been the lack of ups and downs of the story. Huatai car over 31 billion yuan to stay in the dawn of shares, it is added a bit of dramatic color.


February 28, Shuguang shares announced that the major shareholders of the dawn of the Group and Huatai Automobile signed a share transfer agreement. Huatai Automobile will have 21.27% stake in Dawn shares, becoming the controlling shareholder of listed companies.


Although the dawn of the group had "one woman two married" received "civil complaint", but this did not affect the progress of equity transfer of listed companies. In order to enter the dawn of shares, Huatai Automobile acquisition cost more than 3.1 billion, even in the assets and liabilities have reached 69.66% of the case, Huatai Automobile still adhere to the acquisition plan.


In fact, the industry that Huatai Auto invested 3.1 billion yuan behind the acquisition, is the car business of the War. In 2016, 45,000 capacity of Huatai car sales of 73,000, a slight increase of 2.53%, backward passenger car market as a whole 12.37%, behind its own brand average growth rate of 17.97%.


The industry believes that Huatai car this time to buy shares of listed companies, moved to the stock market, may take the opportunity to do two things, one is set, the second is the acquisition. But the two roads on the Huatai car, it seems not very good to go.

June 13, Dongfeng Motor announced that the company intends to price 788 million yuan to Dongfeng limited transfer of its holdings of 51% stake in Zhengzhou Nissan. After the completion of the transaction, Dongfeng Motor no longer holds Zhengzhou Nissan shares.


Zhengzhou Nissan is a tripartite joint venture, established in March 1993, with commercial vehicles, passenger cars and new energy vehicles three business segments. Zhengzhou, Nissan production has continued to decline, the announcement shows that as of December 31, 2016, Zhengzhou Nissan total debt book value of 7.003 billion yuan, the total liabilities after the book value of 6.664 billion yuan.


Is regarded as non-performing assets after the divestiture, Zhengzhou Nissan will no longer be included in the scope of Dongfeng Motor consolidated financial statements, whether it can bring a new turn for Dongfeng Motor?


In the industry view, Dongfeng cars only stripped of bad assets is not enough, follow-up follow-up challenges, such as brand positioning clear, enhance the competitiveness of products, channels and effects of all aspects of further improvement, is the key to qualitative change.


Dongxu photoelectric more than 30 billion acquisition of Shenlong Bus 100% stake


In order to quickly improve the new energy automotive industry and graphene-based lithium-ion battery combination, to achieve the development of graphene industrialization. June 10, Dongxu Optoelectronics through the issue of shares and payment of cash to buy Shanghai Huimao held 100% stake in Shenlong Bus, the transaction price of 3 billion yuan.


At this point, Dongxu photoelectric will completely open up the "graphene material - graphene coated lithium iron phosphate cathode material - graphene lithium-ion battery - new energy vehicles," the industrial chain closed-loop path, the formal entry into the new energy automotive industry market.


Shenlong bus is set up earlier in China's old passenger car production enterprises, products covered pure electric buses and traditional buses, hydrogen fuel cell buses, natural gas passenger cars and other products.


According to Shenlong Bus Chairman Chen Dacheng openly disclosed that Shenlong bus development needs strong financial support. "In 2016, we have a turnover of $ 2.1 billion, but from the market feedback, we can order orders far more than the actual number of orders received. Limited by the financial capacity, we have to give up a lot of orders. Enough words, last year we can do more than 3 billion yuan.


Weimar car 1.18 billion acquisition of Dalian Yellow Sea


February 22, Shuguang shares announcement that the holding of Dalian Huanghai Automobile Co., Ltd. 100% stake in the transfer to Dalian Xinmin Ya Intelligent Technology Co., Ltd., the total transaction price of 1.18 billion yuan.


Need to mention is that the new shareholders of Dalian behind the shareholders for the Weimar car, holding a new 100% stake in Xinya.


China's new energy vehicle manufacturing new entrants, no doubt, Weimar car through the acquisition and integration of a vehicle manufacturing enterprises, is the fastest way to enter the field of automobile manufacturing. And for the dawn of the shares, the sale of poor management of assets, itself is a kind of burden.


Data show that Dalian Huanghai by the dawn of shares in October 2009 to set up investment, the main business scope for the car (except cars), car chassis and its parts such as the development of manufacturing and sales. Dalian Yellow Sea in recent years operating conditions and downturn, product sales are not high, resulting in a continuous loss of business operations. Another announcement that the Dalian Huanghai audited assets totaled 1.08 billion yuan, total liabilities of 464 million yuan, net assets of 615 million yuan.


Zhuhai Yinlong acquired 80% stake in Lanzhou Yutong

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February 14 this year, Lanzhou Yutong bus officially launched a mixed ownership of the assets of the reorganization, after the completion of Zhuhai Yinlong and its related parties will hold 80% stake in Lanzhou Yutong Bus. In accordance with the agreement, in the next 3-5 years, Zhuhai Yinlong in Lanzhou New Area to invest 10 billion to build new energy bus industry base.


It is understood that, as early as June 22, 2016, Zhuhai Yinlong New Energy Co., Ltd. and Lanzhou municipal government signed a cooperation agreement, Lanzhou bus group procurement or lease Zhuhai Yinlong pure electric bus 1500, of which 2016-2017 600 at the same time, the agreement also includes the above-mentioned Zhuhai Yinlong (or its associated investors) to cash-funded capital increase reorganization of Lanzhou Yutong program.


Lanzhou Yutong was established in 2003, was the main bus market in the northwest, but in 2009 suffered a shutdown, and later encountered Yutong bus divestment and many other right and wrong. In 2015, Lanzhou Yutong preparations for resurrection, but because of the lack of technology and market, its survival is very difficult. Zhuhai Yinlong shares, Lanzhou Yutong will develop new energy bus.


Ningde New Energy acquired 22% stake in Vermeer


China Battery Manufacturers Times New Energy Technologies Co., Ltd. acquired a 22% stake in Finnish auto supplier Virtue. Under the agreement, the two companies will work together to build engineering electric vehicle powertrain solutions, and for the leading European car manufacturers and suppliers to provide battery pack.


Vermeer is a high-end manufacturer, Vermeer is located in Finland, the new test Pengji body repair shop has been completed, the factory in early 2017 production of Mercedes-Benz GLC SUV. Previously, Vermeer produced Karma hybrids.


The era of new energy is a Chinese private car battery system manufacturing company, mainly for electric vehicles, lithium-ion battery. Era of new energy intentions through cooperation with Victoria Meide, to enhance their overall strength, and quickly into the European electric car market.


Geely Group acquired 49.9% stake in Malaysia Proton


On May 24, Geely Group will acquire 49.9% stake in DRB's PROTON Holding and 51% of the luxury sports car brand, while Geely Group will become the exclusive foreign investment Strategic Partners.


Proton was established in 1983 with the support of President Mahathir, who once dominated the Malaysian car market. But because of the fierce competition in the import of cars, and now the brand is in development dilemma.


The agreement shows that Geely Group and DRB are committed to continuously enhance the technological innovation capability and market competitiveness of Baoteng, and strive to build it into the first national car brand in Malaysia and the leading brand of Southeast Asian market.


In fact, this year, Geely Automobile also invested 10 billion yuan to buy the United States Silicon Valley flight vehicles, is accelerating the improvement of its global strategic layout.


Jinbei Automobile sells 100% stake in Jinbei Vehicle


June 19, Jinbei Automobile announced a major asset sales and related party transactions plan, to be held by the Shenyang Jinbei Vehicle Manufacturing Co., Ltd. 100% stake in the transfer to the controlling shareholder of Shenyang City Auto Industry Asset Management Co., Ltd., this stripping vehicle manufacturing business The Shenyang Auto Asset holds 24.38% stake in Jinbei Automobile, therefore, this transaction constitutes a connected transaction.


Jinbei Automobile is mainly engaged in the production and sale of light trucks and auto parts. The main products include Jinbei series of light trucks and auto parts, seats, rubber parts and other auto parts. Data show that Jinbei vehicles in recent years, vehicle sales decline year by year, 2014 to 2016 performance continuous losses, to 2016 net profit loss has reached 293 million yuan.


Jinbei Automobile said that through this transaction, listed companies will divest the loss of the vehicle business and assets during the reporting period, to retain better profitability of spare parts assets, optimize the company's business structure and resource integration.