Shandong heavy industry plans to acquire Kaiao group of Germany for 700million euros Guide: following Sany's acquisition of German elephant, it has been reported recently that Shandong Heavy Industry Group Co., Ltd. (hereinafter referred to as Shandong heavy industry) plans to acquire 25% equity of Kaiao group, a German forklift manufacturer, at a price of more than 700million euros. Under the worsening European debt crisis, Chinese enterprises in the European market
following Sany's acquisition of "elephant" in Germany, it was recently reported that Shandong Heavy Industry Group Co., Ltd. (hereinafter referred to as "Shandong heavy industry") intended to acquire 25% of the equity of Kaiao group, a German forklift manufacturer, at a price of more than 700million euros
with the worsening European debt crisis, Chinese enterprises are sure that the content of various elements in materials is active in the European market, and the number of mergers and acquisitions is gradually increasing. In this regard, experts said that although it should be a good opportunity to acquire European enterprises now, the risk of bottom hunting in Europe still exists, and the expansion of Chinese enterprises depends more on whether there is a "synergy effect"
according to foreign media reports, Shandong heavy industry is negotiating to acquire a 25% stake in Kaiao group, a German forklift manufacturer. At present, the negotiation has entered a late stage. The amount of this transaction is about 700million to 800million euros (about 878.8 million to 1billion dollars). If the acquisition is successful, it will become one of the largest transactions conducted by Chinese enterprises in Germany
the negotiation between Kaiao group shareholders Goldman Sachs Group and Kohlberg Kravis Roberts Co. (KKR) and Shandong heavy industry has been delayed for several months. The deal is expected to be concluded in the next two weeks, and Shandong heavy industry will invest in Kaiao group through capital injection
Li Zhengdong, an analyst at Shanxi securities, said that the biggest possibility for Kaiao group to sell its equity is financial pressure. "Keyao group once issued medium-term debt notes, which will expire next year, but negotiated with the borrower to postpone the repayment date to 2017 to alleviate the financial pressure. In this case, if Keyao group sells part of its equity, it will be a great help for its debt refinancing next year."
Kaiao group is the world's second largest forklift manufacturer after Toyota automatic loom company in Japan, with an annual revenue of 4.4 billion euros. Its forklift brands include Linde (lin3, anchor fatigue testing machine pulsator equipped with five output interfaces de), OM still, Fenwick, Baoli and voltas. At present, Kaiao has become the largest foreign forklift manufacturer in China, with two joint ventures in Jingjiang, Jiangsu and Xiamen, Fujian
Shandong heavy industry is the parent company of Weichai Power Co., Ltd. The group's business covers five sectors: commercial vehicles, construction machinery, power systems, core components and yacht manufacturingLu Jinyong, director of the international direct investment (FDI) research center, believes that German machinery manufacturing is very good in terms of brand, technology, quality and management system. In addition to being attracted by these factors, Chinese enterprises' Mergers and acquisitions in Europe are more important to broaden the European market and create the global strategic layout of enterprises
Tan Xuguang, chairman of Shandong heavy industry, said publicly in June this year that the group would integrate various resources of fatigue testing machines at home and abroad - equipment measurement defects, use capital mergers and acquisitions and other means to establish a globally beneficial and balanced business structure, and achieve the goal of overseas exports accounting for one third of operating revenue in the next three to five years
although entry can reduce the bid price when the European economy is in recession, Chinese enterprises still face local regulations, employment, trade unions and other problems after mergers and acquisitions
since the beginning of this year, there have been frequent news that Chinese enterprises have acquired European assets: Shandong heavy industry has obtained 75% equity of Italian Faraday group, the global luxury yacht giant; Sany Heavy Industry acquired Putzmeister, Germany; Guangxi Liugong acquired the construction machinery division of Polish enterprise HSW; Guodian acquired 25% of the shares of Portugal's national energy company; China investment company bought 8.68% shares of Thames Water, etc
last year, the amount of mergers and acquisitions of Chinese enterprises in Europe has exceeded 70billion US dollars, almost 10 times that of 2010
"due to the European debt crisis and the recession of the European economy, the valuation will be relatively cheaper at this time. It is still a commercial behavior for Chinese enterprises to buy more in Europe, so now it should be a good opportunity to buy German enterprises." However, Lu Jinyong also stressed that European M & A enterprises are more interested in their technology and brand, so Chinese enterprises should be more cautious in valuation judgment. In addition, the biggest problem encountered after M & A is the layoff of employees
at the same time, Li Zhengdong also said that unlike Sany's acquisition of German "elephant", Shandong heavy industry only acquired part of the equity of Kaiao group, which is a long-term equity investment. At present, it has no management right. Although it only involves future investment income, credit risk is still unavoidable