Tai Hua Supermarket Group's loans and the investments from Feng Yu and the other shareholders allowed Tai Hua Supermarket Group to raise enough funds to acquire Costco.
Feng Yu had injected Polar Bear Supermarket Group's shares into Tai Hua Supermarket Group, and Tai Hua Supermarket Group had grown rapidly. At the same time, there were changes in the company's shares.
Taihua Holdings was still the biggest shareholder of Tai Hua Supermarket Group. Feng Yu and Fu Guangzheng had converted their shares to Taihua Holdings a long time ago. But Fu Guangwei, Li Zekai, and Superman Li were still holding the company's shares. Fu Guangwei had become the second-biggest shareholder of Tai Hua Supermarket Group, and Li Zekai's shares had increased, while Superman Li's shares had decreased.
Without any competition from Taihua Holdings, Fu Guangwei became the Chairman and CEO of Tai Hua Supermarket Group. Li Zekai and the rest became the directors, and they owned 95% of Tai Hua Supermarket Group's shares. The remaining 5% was owned by the top management.
Although Taihua Holdings still does not have the absolute control of Tai Hua Supermarket Group, they owned 61% of the company's shares. This Tai Hua Supermarket Group will never be out of Feng Yu's control.
The restructuring of the company's assets was not announced to the public. After all, Taihua Holdings and Tai Hua Supermarket Group were not listed companies, and there was no need to announce everything.
But Tai Hua Supermarket Corporation's acquisition of the US's Costco was announced, and it shocked the industry.
Everyone realized that Tai Hua Supermarket Corporation and Polar Bear Supermarket Corporation are very close. If these two supermarket corporations merge, Polar Bear Supermarket Corporation will be closer to Wal-Mart.
Although Polar Bear Supermarket Group was not big, and its annual turnover was only about 40 billion Euros, many people still do not know that Polar Bear Supermarket Group had an online shopping mall. Also, many people don't know that Polar Bear Supermarket also has an online shopping mall. If this is included, Polar Bear Supermarket Group's turnover will be higher.
But this supermarket group was set up by Kirilenko and Feng Yu. If both of them took out a sum of money to acquire one or two supermarket chains, the company's scale might reach 100 billion USD.
When Tai Hua Supermarket Group merged with Tai Hua Supermarket Group, Walmart's position as the world's top 500 retail giant will be shaken!
If he could become the world's number one, perhaps some people would be willing to accept not being a major shareholder. Furthermore, everyone in the world knew how close Feng Yu and Kirilenko were.
If these two people merged their retail businesses, it would be too scary.
Wal-Mart is also very worried about this, especially since Wal-Mart has suffered a lot this year.
Although Walmart is a retail group, their investments in the financial sector are very high.
It's very simple. It's because the supermarket's cash retention rate is very high. Products are delivered at the beginning of the month and settled at the end of the month. Those suppliers have to replenish the goods according to Walmart's requirements.
Wal-Mart was the world's number one, and they couldn't afford to offend it.
This way, Wal-Mart's daily cash income will be astronomical. Why can't they invest this money and keep it in their accounts?
Therefore, Walmart had made many other investments, but they were all related to their retail business. For example, holding shares in some shopping malls, or acquiring some retail groups, etc.
Of course, they also made some financial investments, but the scale was not large. But even if the scale was small, the US financial market's performance this year was so bad that Wal-Mart still suffered a lot of losses.
What's more, the severe economic downturn in North America even dragged down many countries and regions around the world, which also caused Walmart's overall sales to decline.
Wal-Mart even planned to close some of its overseas branches this year to reduce the risk.
In Feng Yu's previous life, Wal-Mart's sales had been declining for the next three to four years. Some people said it was because of the financial crisis, and people's purchasing power had dropped.
Others said it was because of online shopping. Amazon had snatched away many customers.
But no matter what, the next few years will be Wal-Mart's weak period. But this will not affect Tai Hua Supermarket Group much. Hua Xia's market share is still growing.
For example, other than Tai Hua Supermarket Group, Hua Xia still has two supermarket chains with more than 1,000 branches. They are Lianhua and Hualian. There are also Huarun Vanguard, Suguo, Wumart, Trust-Mart, etc., which have more than 500 branches. But these supermarket chains cannot be compared to Tai Hua Supermarkets, let alone Tai Hua Hypermarkets.
Hua Xia's supermarket chains are doing well now, and it is not inferior to North America and Europe. This is because Hua Xia's population is denser, and the economy is still growing.
When the economy is growing, people's purchasing power will increase, and the retail industry will become more developed.
Some people even set up 24-hour convenience stores. The chain stores are bigger and have more branches. They are mainly set up in the residential areas, and their business is doing well.
Wal-Mart had considered for a long time and decided to acquire Hua Xia's Trust-Mart Supermarket Group. This supermarket group has more than 500 branches. Although the branches are not big, the locations are good, and the management model is mature. Once Wal-Mart takes over this supermarket, it will not make any losses.
If Wal-Mart's management model and Wal-Mart's sourcing channels are introduced, the cost will be lowered, and the profits will increase.
Then, Wal-Mart's brand will be added to this supermarket. Wal-Mart will be the world's number one brand, and it will not be difficult to expand.
Also, Trust-Mart's debt ratio is high. This is the result of expanding too fast, and the shareholders have the intention to sell their shares.
When the news of Wal-Mart acquiring Trust-Mart was released, Feng Yu was also surprised.
Wal-Mart is going to enter Hua Xia's market. In the past, Wal-Mart, Carrefour, and other international supermarket giants were stopped from entering Hua Xia's market. Now, Wal-Mart had found a new way to enter Hua Xia's market.
Feng Yu was worried about the most had happened. Those international retail giants will surely imitate Wal-Mart. Will Hua Xia's market enter the era of competition?
Since that's the case, then Tai Hua Supermarket Group does not need to stand on ceremony. Those people are willing to sell their companies to overseas companies. They might as well be swallowed by Tai Hua Supermarket Group.
Feng Yu can even set up a United Nations-funded retail group to consolidate the resources of Hua Xia's supermarkets. Feng Yu is not willing to let foreign investors take advantage of him even if he had to give up profits to a state-owned supermarket group!
Feng Yu immediately asked his men to investigate. He contacted those large retail companies to see if any foreign investors were interested in acquiring their companies.
Feng Yu was shocked when he heard the investigation.
So many retail companies had entered Hua Xia's market with a joint venture model.
Those foreign retail companies had used their funds, management, and sourcing channels to invest in these companies. They managed to own more than half of these companies' shares. Unknowingly, the Hua Xia's market had been invaded by these retail companies.
Feng Yu had a cold smile on his face. Seems like it's time for a reshuffle in the Hua Xia's retail market!
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