Jis Flange,Lower Flange,Butt Welding Flange,Flat Welding Flange Zhangqiu Xinhao Machinery Parts Factory , https://www.xhflange.com
A piece of paper comes from the agreement between the central enterprises and local auto companies and announced the reorganization of the domestic auto industry.
On May 16, the Fujian Provincial Government and Dongfeng Motor (3.39, -0.02, -0.59%) company held a signing ceremony of a strategic cooperation framework agreement in Fuzhou in a low-key manner. According to the framework agreement, Dongfeng Motor Co., Ltd. will acquire part of the equity of Fuqi Group held by the Fujian Provincial State-owned Assets Supervision and Administration Commission in a capital increase manner to achieve cooperation at the Fuqi Group level. At the same time, Dongfeng Motor Corporation and Fuqi Group held the Southeast (Fujian) Automobile Industry Co., Ltd. in the form of an investment company.
For the details of more cooperation in the future, this signing ceremony was not disclosed.
In the southeast
After many setbacks, Fujian Automobile finally hit the "big money" Dongfeng.
In fact, around May 1, the China Times reporter learned from sources that the reorganization negotiations between the two parties are in full swing. With the signing date of the two parties approaching, Dongfeng Motor (600006.SH)'s stock price continued to limit for two consecutive trading days on May 10 and 13, setting a new high in nearly a year. On May 14, Dongfeng Motor announced that it was suspended due to unusually high stock price fluctuations.
Until May 16, the reorganization of Dongfeng and Fuqi finally settled. The agreement announced that Dongfeng will carry out a full reorganization of Fuqi. The reorganization will include passenger cars, commercial vehicles, powertrains, and key components for automobiles. The entire vehicle structure of Fuqi Group will be re-sorted. Fuzhou Auto's own-brand autos of the Southeast Motor and the new Ryoma mini-vehicle project newly launched will be incorporated into Dongfeng's "great autonomy strategy."
According to a person close to the Dongfeng and Fuqi reorganization negotiations, the reporter disclosed that in the future there will be two kinds of stock options: one is four-and-six open, Dongfeng accounts for 40% and Fuqi accounts for 60%; the other is Dongfeng. 45%, Fuqi 55%. At the same time, another more explicit framework reached by both parties is that Dongfeng Motor will obtain more than half of its shares in the 50% equity of Southeast Motors held by Fuqi Group. According to this framework, Dongfeng Motor will hold more than 25% of Southeast Auto's shares in the future, but the specific share has not yet been agreed.
At present, the ownership structure of Southeast Automotive is: 50% for Fuqi Group, 25% for Taiwanese China Motors, and 25% for Mitsubishi Motors. If this framework agreement is finalized, Dongfeng Motor will become the largest shareholder of Southeast Motor, and Fuqi Group will become the minimum shareholder. Dongfeng this move can be said to test the water southeast, and then seek blessing steam.
The agreement between Dongfeng Motor and Fuqi Group, which holds a minority stake in Fuqi Group and a majority share in Southeast Automotive, clearly shows that Dongfeng Motors attaches importance to Southeast Automotive, and it also confirms to a certain degree that Southeast Motor will help Dongfeng Motor. To realize the analysis of the "large autonomy" strategy. However, Cao He, a national securities auto industry analyst, told the Huaxia Times reporter: “The cooperation between the two sides is not very significant for the Dongfeng. From a strategic point of view, it is only a base in the southeast.â€
According to sources, the density and depth of contact with Dongfeng Motors in Fujian have gone further than before, and the two sides may be planning for the development of Southeast Automotive after the reorganization.
Reuse East Wind
In recent years, the development of Fuqi has always been on the edge of the industry. Public data shows that in 2011, Fuqi Group achieved sales revenue of 30 billion yuan; in 2012, Fuqi Group achieved operating income of only 10.26 billion yuan, a significant drop.
However, Fuzhou Automotive Group’s auto companies only made profits from Southeast Motors and Xiamen Jinlong, Fujian Daimler and New Longma were losing money. Due to slow product launches and other reasons, Southeast Motor's sales have also been sluggish. It can be said that Fuqi Group needs to use external forces to change the status quo.
Informed sources admit that after Dongfeng Motor became a major shareholder of Southeast Motor, if it did not enlarge the scale and development platform of Southeast Motor, it did not completely break through 100,000 production and sales of Southeast Motor (2012 Southeast Automotive sales volume was approximately 110,000 units). , where the sales volume of self-owned brands reached more than 60%, restructuring would lose its significance.
Since South East Motor launched its own brand car V3 Ling Yue in October 2008, V-series sedan products have become the main production and sales of Southeast Motors. A senior person from Southeast Automotive stated that “From the perspective of the technical background, production platform, development process, and current independent research and development capabilities of Southeast Automotive, its own brand has certain advantages compared with other domestic independent brands.â€
In contrast, Mitsubishi Motors’ brand of Mitsubishi Motors Co., Ltd. has been highly prized for its confidence in Mitsubishi technology. However, after years of hard work, the market performance has been unsatisfactory. So that people in the Southeast Asian automotive market are also puzzled. "I don't know where the problem lies?"
In September 2012, GAC and Mitsubishi Motors each held a 50% stake in Guangzhou Automobile Mitsubishi, leaving Mitsubishi Motors in the future direction of the Southeast Motor left a variety of conjecture. And if this Dongfeng Motor finally realizes its role as the largest shareholder in Southeast China Auto, it will also cause changes in the ownership structure and production configuration, which is even more interesting.
According to the above sources, the Fujian Provincial Government’s intention was clear in this negotiation, that is, it hoped that the cooperation between Fuqi Group and Dongfeng Motor, a large “central state-owned enterpriseâ€, could be achieved in order to obtain a higher development platform, introduce new resources, and revitalize stock assets. Rapidly bigger and stronger. It is reported that the negotiation was initiated by the Fujian Provincial Economic and Trade Commission and the Fuzhou Automobile Group together with Dongfeng Motor.
Still playing
"Although the two sides signed a reorganization framework agreement on the 16th, whether or not the reorganization can be finally achieved is still variable." Another source close to the matter disclosed to this reporter.
The above-mentioned sources stated that reorganization generally takes place in three phases: first, signing the framework agreement, followed by due diligence, and finally, signing a contract with legal validity.
What is still fresh in memory is that in 2009, BAIC and Fuqi Group also signed a framework agreement. At that time, Beiqi wanted to enter Fujian Benz and purchase 40% of the Fujian Benz equity held by the Fuqi Group. The two parties even went to the due diligence stage. However, due to the purchase price and various other reasons, this matter was finally lost. “At that time, the aggressiveness displayed by Beiqi was aggressive and this made Fujian feel very uncomfortable.†The insider of Fuzhou, which has participated in the restructuring of Fuqi, said that the Fujian side’s attitude is: “We must reorganize, but we need to show sincerity and sincerity. (Whether it is the scale of assets or technical strength must be higher than Fuqi.)
From this perspective, the reorganization of Dongfeng and Fuqi has actually not gone far enough with Beiqi's restructuring. There are variables, and it is also reasonable.
It is understood that the two sides have not yet reached a specific agreement on the cost and conditions of Dongfeng Motor’s shareholding in Fuqi Group and Southeast Automotive. The composition of the shareholder and interest of Southeast Motor is complex, and balancing the relationship between the parties is also a major test. "The success of Dongfeng's integration of Fuzhou Gas will depend on whether or not the existing asset relationship can be fully clarified. The second is to see how much money it injects into Fuzhou Gas and what kind of product resources it injects." Jia Xinguang, Automotive Industry Analyst think.
What is different is that the current trend of reorganization of the Chinese auto industry seems to be even more pronounced. From the central government to local governments, there have been clear policy orientations and practical needs for mergers and acquisitions. Under the background of the State Council's request for the automobile industry to speed up mergers and reorganizations, the strategic cooperation between the Fujian Provincial Government and Dongfeng Motor Company is undoubtedly of exemplary significance in advancing the structural adjustment and transformation of the automobile industry.
However, there is still a long way to go after the merger and reorganization between Dongfeng Motor and Fuqi Group. Zhang Zhiyong, an analyst in the automotive industry, believes that even if Dongfeng’s restructuring of the Fuqi Group has been finalized, the interests of the two parties and the multi-stakeholder relationship involved in the integration will all make this integration a long way off. As for the effectiveness of the cooperation between the two sides, Cao He analyzed that: “The cooperation between Dongfeng and Fuqi will have a boost effect in a short period of time. In the long run, it will take four to five years to see a larger effect.â€