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Research and analysis: overseas mergers and acquisitions of China's construction machinery industry

Research on the internal diameter of seamless steel pipes above 6.0mm analysis: overseas mergers and acquisitions of China's construction machinery industry

China Construction machinery information

Guide: after Sany invested 2.7 billion yuan to acquire the German enterprise potzmeister, Liugong also invested in the acquisition of the construction machinery business unit of Polish construction machinery enterprise HSW. In the same period, XCMG machinery is planning to acquire SCHWING, a German concrete engineering machinery giant, and China's top construction machinery company

after Sany Heavy Industry invested 2.7 billion yuan to acquire the German enterprise Putzmeister, Liugong also invested to acquire the construction machinery business unit of HSW, a Polish construction machinery enterprise. In the same period, XCMG machinery is planning to acquire SCHWING, a German concrete construction machinery giant...

China's top construction machinery manufacturers are now accelerating the pace of going global, and a series of overseas mergers and acquisitions have come in a continuous stream. Although people are no strangers to overseas mergers and acquisitions, if we go back 20 years, Chinese enterprises often play the role of being merged. Now the situation is just the opposite. Experts believe that this wave of cross-border mergers and acquisitions is a sign of the gradual maturity of China's construction machinery enterprises and an inevitable choice for enterprise development under the situation of China's economic globalization. Behind the concentrated outbreak of overseas mergers and acquisitions in China's construction machinery industry, there are both occasional and inevitable

going out to achieve growth

as early as 2008, before the arrival of this wave of overseas mergers and acquisitions, Zoomlion acquired 100% equity of Italian concrete machinery enterprise cifa100 at the cost of 271million euros. Time has proved that Zoomlion's choice is not wrong. When acquiring CIFA, Zoomlion retained its original management and production team and became the first large Chinese construction machinery manufacturer to do so. In the past three years, CIFA, which was acquired, successfully got rid of the impact of the economic crisis and began to make profits last year. Zoomlion gained the support of advanced technology and global marketing network to develop at a high speed

in recent years, the weakness of the US economy and the spread of the European debt crisis have provided a good opportunity for Chinese construction machinery enterprises to prepare for overseas mergers and acquisitions. Some enterprises seized the opportunity and laid a solid foundation for the transformation of China's construction machinery from manufacturing to intelligent manufacturing in the wave of construction machinery development competition

the report shows that in 2011, the number and amount of overseas M & A transactions of Chinese enterprises reached a record: 207 transactions, amounting to US $42.9 billion; In 2012, the momentum of mergers and acquisitions has become more intense, and many of the acquisition targets are world-class enterprises. The overseas acquisition of China's construction machinery giant is not only to dismantle production lines and transport them back to China, but also to pursue brand awareness and distribution network, and achieve the goal of pushing China into the throne of the world's largest exporter of construction machinery

the importance of overseas business highlights

at present, the global construction machinery market has reached US $150billion. Chinese enterprises can go out and win more shares. Among the top 50 construction machinery manufacturers in the world in 2010, the revenue of Chinese manufacturers accounted for 15%, compared with 1.6% in 2003. According to the 12th Five Year Plan, the sales scale of China's construction machinery industry will reach 900billion yuan by 2015. To achieve this rapid growth, overseas mergers and acquisitions will undoubtedly be a shortcut for China's construction machinery industry to become bigger and stronger

Minister of Commerce chendeming once said that he would encourage powerful enterprises to invest in mergers and acquisitions worldwide, integrate resources, cultivate internationally renowned brands, and increase support for private enterprises to "go global". He pointed out that in the future, China will speed up the negotiation of investment protection agreements with important economic and trade partners, eliminate market access barriers, and strengthen the protection of investment rights and interests; Strengthen the risk warning for enterprises and improve the emergency response mechanism for overseas emergencies; Guide enterprises to deal with overseas antitrust review and litigation

this is imperative for China, which is in the stage of development and transformation. Due to the financial crisis and the European debt crisis, a large number of European enterprises are facing the situation of declining product sales, defaulting on supplier payments and employee salaries, and even on the verge of bankruptcy, which not only mobilized the enthusiasm of Chinese enterprises to seek bottom overseas, but also provided a rare opportunity for Chinese enterprises to rapidly improve their comprehensive strength and integrate into the international market. If these mergers and acquisitions can be successfully completed, they will play a substantial role in expanding the overseas influence of Chinese construction machinery enterprises' brands, absorbing advanced technology from foreign construction machinery enterprises, and improving the quality of Chinese products. Compared with the ill fated overseas mergers and acquisitions in the communications and automotive industries, the road of mergers and acquisitions of China's construction machinery enterprises is relatively smooth. In addition, while expanding overseas markets, Chinese construction machinery enterprises have also paid attention to strengthening the layout of overseas trademarks and patents in recent years, laying the foundation for the smooth progress of mergers and acquisitions

mergers and acquisitions need to strengthen risk prevention

with the continuous improvement of overseas marketing and manufacturing systems of Chinese construction machinery enterprises and the continuous penetration or deepening of overseas mergers and acquisitions and other means into the global market, the international expansion of China's construction machinery industry is bound to enter a higher and newer stage. As a result, the influence of Chinese construction machinery enterprises in the global construction machinery industry will rapidly increase and gain the voice of the global construction machinery industry. Since the 1990s, overseas mergers and acquisitions have gradually become an important way for Chinese enterprises to invest abroad. Although there are many successful cases, there are also many lessons of failure. For example, in 2004, SAIC Group purchased a high-profile 48.92% stake in Ssangyong, South Korea, at a price of $500million. Small and medium-sized steel mills could not help producing ribbed steel by adding vanadium, but this acquisition once led to a strike by Ssangyong employees. Since then, Liugong once suspended the acquisition of HSW construction machinery business unit in Poland. After some twists and turns, the two sides finally reached a consensus

analysts believe that Chinese enterprises have more and more experience in overseas mergers and acquisitions, and these failed cases need to be faced up to and analyzed. On this basis, some failures should be allowed to exist

although Chinese enterprises' understanding and understanding of mergers and acquisitions has become mature and rational, the annual growth rate of China's chemical industry's foreign investment has reached about 80%, but risks still exist at all times, and mergers and acquisitions still need to be cautious. Insiders said that there are not many successful mergers and acquisitions of enterprises worldwide. Chinese construction machinery enterprises must realize that this is very important for designing safe and reliable products. Indeed, the goal is: why do you need that enterprise? Can you control it? Can the funding problem be solved? Therefore, the acquisition of overseas companies should be cautious and avoid risks as much as possible in order to truly become bigger and stronger. In any case, mergers and acquisitions give domestic enterprises the opportunity to participate in the international market closely, and will also promote the completion of the goal of the 12th Five Year Plan Development Strategy of construction machinery - the transformation from a large manufacturing country to a powerful manufacturing country, and the transformation from extensive, imitation, and quantitative to scientific and technological innovation, quality, and efficiency

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