Of course, Ralph didn't say it casually. They really planned to acquire this supermarket group. Of course, they are not buying this supermarket group. They are buying a stake in this North American supermarket group. This supermarket group is currently ranked 8th in North America, and its annual turnover is over 30 billion USD.
If they can acquire this supermarket group and merge it with Tai Hua Supermarket Group, they will increase Tai Hua Supermarket Group's scale and reduce their cost.
Feng Yu wants Ralph to use Wind and Rain Holdings to acquire this supermarket group and sell it to Taihua Holdings. After merging it with Tai Hua Supermarket Group, Feng Yu's stake in Tai Hua Supermarket Group will be increased.
Di Brown is furious. This supermarket group is their key to entering the North American market and is also their way to expand their scale.
They want to own this supermarket group and acquire other supermarket groups of the same size. After that, they will return to being one of the top three retail giants in the world. They will overtake Tai Hua Supermarket Group and shake off Polar Bear Supermarket Group, which is chasing after them.
Now, it seems that Wind and Rain Holdings is determined to compete with them.
Di Brown does not know that Ralph had not only contacted this supermarket group. A few other supermarket group's shareholders had contacted him and wanted to sell some of their shares to him.
Some of them had made losses from other projects and need funds. Some of them want to invest in other industries to raise funds. Some of them had dropped their sales and need new shareholders to stimulate them.
That's why Ralph has many options. He does not only want to sell this supermarket group's shares.
But the shares of the other supermarket groups are too little to satisfy Feng Yu. Even if Feng Yu does not own the controlling stake, he must not be a small shareholder. He must own at least one-third of the shares.
Feng Yu wants to expand Wind and Rain Holdings and Taihua Holdings's businesses after making a big profit.
This way, through cross-shareholdings, the equity structure would become more complex and more stable.
Masao Kameda is also looking into the automobile, IT, electronics, etc. industries. Of course, these are Japan's top industries.
Many of Feng Yu's enterprises might have the highest brand awareness and brand value, but their scale was not good.
For example, Wind & Rain Electronics and Wind and Rain Appliances are still a far cry from Sony and Panasonic.
Others were also in the electronics industry, but they were able to develop very well in the derivative industries and become the world's top companies.
In terms of factory scale, Wind & Rain Electronics and Wind and Rain Electronics are much worse.
If they could acquire a top electronics and electrical appliance company at this time, it would be extremely beneficial to the expansion of their scale.
It's the same for automobiles. Although Bing City Machinery Manufacturing Group is the leader of Hua Xia, their sales and brand value are not among the top 10 in the world.
If Songjiang Motors can acquire some automobile brands now, they can use these brands' channels to promote Songjiang Motors. After 5 to 10 years of development, Songjiang Motors will be able to take over that market.
When a company developed to a certain scale, it would often take the path of acquisition and merger. This is because most companies will focus on one market first and slowly expand their market share.
But when you focus on one market, your competitors will also focus on another market. If you want to expand your market share, your competitors will also want to expand their market share.
Most of the time, neither company's products will be better than the other. Both companies have their own advantages and have loyal consumers. If both companies fight for the market share at this time, it will be a lose-lose situation.
What's the most common solution in Europe and the US? Merger!
If it's a small company and a big company, then the bigger company will want to acquire the smaller company. Sometimes, they will also adopt the merger model.
But if the two companies are about the same size, and neither company can acquire the other, they will adopt the merger model. This way, they can combine the strengths of both companies and let all the shareholders make money.
A typical example is Daimler Chrysler. It is the product of the merger of two powerful automobile manufacturers.
After the merger, the shareholders of the two companies will become the shareholders of the new company. This way, the shareholders can make more money. The only thing they need to compete for is the power and brand of the new company.
There are also examples of small companies swallowing big companies.
For example, WorldCom is a typical example of a small company swallowing big companies. But in the end, the company became the world's second largest internet and telecommunications company within two to three years. Its market value is close to 200 billion USD.
But the reality is that they have debts of more than 40 billion USD, and they are making losses every year.
To maintain their share prices, they had to take the risk and falsify their accounts. After Feng Yu found someone to expose this, the company's share prices plunged and went bankrupt.
Those former WorldCom shareholders were listed on the list of the world's billionaires. But many of them went bankrupt later.
Feng Yu's method is different. He does not want to acquire the company. He wants to acquire it with cash.
First of all, he had a lot of cash now, and after this, he would have even more cash. This cash would definitely have to be spent.
Acquiring well-known companies in the same industry to expand his company's scale is the safest way. This is better than entering an unfamiliar market. Firstly, it is easier to manage the company, and secondly, it can integrate the company's resources and make the company stronger.
Unless this unfamiliar market is strategically important, like the shipping industry, it will be a different story.
The companies that need to be expanded the most are those that are not the world's number one. They are already the world's number one, and if they continue to expand, there will be more troubles.
For example, they will be suspected of monopolization and will be boycotted by other countries.
But if the company is not the world's number one, it will be much easier. Feng Yu wants to make some companies the world's number two or three companies, and then become the world's number one through his own development.
This way, he can avoid some troubles, and at the same time, it will be challenging and motivating.
It will be difficult for Feng Yu to become successful in one go. For example, the automobile industry. If Feng Yu wants to become the world's number one, he must acquire a company that is four times bigger than Songjiang Motors. This will not only be a small company swallowing a big company, but it will also require an astronomical amount of funds.
But Feng Yu can acquire some automobile brands and develop slowly. Within ten years, it is possible for him to become one of the world's top five automobile companies. After that, Feng Yu might have the chance to become the world's number one.
These large acquisitions cannot be carried out now, and Feng Yu will not use his money to acquire these companies now. In one or two years, after the economic crisis, it will be the best time for Feng Yu to make his move!
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