Auto Parts welcoming a wave of consolidation, acquisition of Chinese enterprises
"At present, parts suppliers in China still enjoy the feast of the carnival stage, but the local parts supplier is best to plan ahead, using the best time to buy quality assets overseas, or technology, so that its faster growth, in order to meet future major integration of be prepared. "
"The integration of the global automotive parts industry is much larger than the intensity automobile enterprises, China's auto parts industry, especially the OE (auto parts) supporting the market, but also will eventually usher in a huge wave of consolidation."
Beijing Auto, Geely exploring overseas markets, China's domestic parts manufacturers are also pitching in, too. December 14, Zhejiang auto parts company, Ningbo Yunsheng Co., Ltd. (hereinafter referred to as "Ningbo Yunsheng") and Japan's Nikko Electric's four shareholders signed a share transfer contract, the price of Ningbo Yunsheng nearly 92 million yuan the acquisition of Nikko Electric Industry Co., Ltd. (hereinafter referred to as "Nikko Electric"), 79.13% of the shares.
Had more than one month, another auto parts company, Ningbo Shenglong Group's acquisition of Borg Warner Inc. unit of SLW. If the ongoing components of overseas acquisitions this year, including the second half of the local parts companies overseas acquisitions were more than up to 10. The global financial crisis to the local parts supplier leap the best opportunities for development.
"The integration of the global automotive parts industry is much larger than the intensity automobile enterprises, China's auto parts industry, especially the OE (auto parts) supporting the market, but also will eventually usher in a huge wave of consolidation." Matchless car CHEN Wen-kai, president of the CBN network told reporters.
Ningbo Yunsheng acquisition of the sample
December 14, Ningbo Yunsheng announced a partnership with Daiwa Securities Co., Ltd., AsiaRecoveryFundL.P., AsiaRecoveryCo-InvestmentPartnersL.P. And WLRRecoveryFundL.P. Entered into a share transfer contract, respectively, to total 1.17 billion yen (equivalent to approximately 92 million yuan million) acquisition of the four held by shareholders of Nikko Electric 79.13% stake. The completion of the acquisition, Nikko Electric will become a holding subsidiary of Ningbo Yunsheng.
Ningbo Yunsheng private manufacturers in Zhejiang Province, the main business covers the permanent magnetic materials, automotive electrical and other fields. Nikko Electric well-known auto parts for the Japanese manufacturer, was founded in 1933, mainly engaged in Auto Electric Parts, DC motors and control equipment such as product manufacturing and sales. Customers include Isuzu Motor Company, Komatsu Ltd. and Mitsubishi Heavy Industries.
Ningbo Yunsheng Wang Ping securities of the CBN, told reporters that the entry into force of this agreement to be acquired Ningbo Foreign Trade and Economic Cooperation Bureau of the approval, the acquisition is also subject to the payment of Ningbo City branch of the State Administration of Foreign Exchange approval. Is expected to be completed in February 2010 and completed the approval process the payment and equity funds delivery.
"Yun l nikko electric motor business and product lines are complementary, the two sides can the cost of production and quality control on the complementary advantages of cooperation will be conducive to quick access to China's domestic vehicle products matching the market." Ping Wang said, Nikko Electrical products are suitable for heavy trucks, buses and construction machinery market sectors, with the original rhyme up generators for cars in Europe and America to start the machine's core areas of complementary parts. In terms of cost control, Nikko Electric Ningbo Yunsheng can help to effectively reduce the purchasing, manufacturing costs. In turn, Nikko Ningbo Yunsheng motor can also help to improve product quality into a more high-end market.
The acquisition has not yet completed, but the Ningbo Yunsheng has developed an ambitious development plan, "This acquisition, the rhyme-liter motor car business as a whole will be approximately 200 million annual sales expanded rapidly to 600 million to 7 billion yuan sales volume With China OE (auto parts) supporting market development, 2 ~ 3 years after the sales had hoped to expand to more than one billion yuan. "Ping Wang said.
Attack foreign takeover of domestic parts and components
Ningbo Shenglong Group, an acquisition by the end of October this year, staged a parts industry overseas, "buy the dips," a classic case. October 26, Shenglong Group 15.994 million U.S. dollars of the price of the acquisition of the world's top 500 enterprises in the United States SLW Borg Warner Automotive Group Co., Ltd. (hereinafter referred to as "SLW") 90% or more shares. The acquisition enables the Group acquired SLW Shenglong's technology and markets, Sheng-car market share ranking is expected to pump from the world's fourth place to second place.
Sheng-Luo Yulong Group Chairman, said the financial crisis helped Shenglong Group "big fish eat small fish." In the meantime, Shenglong Group also can make use of this acquisition, directly into GM, Ford and so a supplier. "Harvest will be comprehensive."
North Henan (Xinxiang) Power Steering Co., Ltd. (hereinafter referred to as "northern Henan Company") is negotiating to buy from GM before Delphi (now Nexteer) steering systems business. Has completed the acquisition of West Beijing Heavy Industry Co., Ltd. has a further acquisition of Delphi damping and braking operations, the transaction last month signed on the 6th in the United States Detroit. Ningbo this year alone, overseas acquisitions took place as high as 20 onwards Among them, mostly textiles and auto parts businesses.
"More and more overseas acquisitions by Chinese companies began to acquire advanced technology or sales channels." Nihon Keizai Shimbun commented.
"Overseas auto industry is still relatively low, there are still many valuable parts and components of quality of overseas assets can be acquired at lower prices." CHEN Wen-kai said that the site is preparing to organize the docking activities to help Chinese companies looking for more "overseas bargain-hunting opportunities" .
However, the global status from the spare parts industry perspective, the world's major market downturn caused great upheaval parts industries, layoffs, cut-off and merger integration frequent. As Chinese enterprises to small and relatively backward technology, lack of experience in global operations, this trend in general is not beneficial to the Chinese parts enterprises. The possibility of Chinese enterprises to be integrated, far greater than the integration of other businesses.
CHEN Wen-kai believes that the current parts suppliers in China still enjoy the feast of the carnival stage, but the local parts supplier is best to plan ahead, using the best time to buy quality assets overseas, or technology, so that its faster growth, in order to meet future great integration ready.
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