"Feng, your negotiations with that bank are going well. I saw the media had reported about your acquisition." Kirilenko was happy for Feng Yu.
"It's alright. The price I offered is very high, and there are not many people willing to buy their bank. They do not have many choices."
Feng Yu leaned on the sofa in front of the stove. It's a pleasure to be warm by the stove in the cold winter. Luckily, Ralph had done the work, and Feng Yu only needs to come over to make the final decision. This is the benefits of being a boss. Feng Yu only needs to make the final decision and does not need to do anything else.
"It's good to hear that everything is going well. I had contacted Li Tinto, but we have a strong competitor."
A competitor? Feng Yu remembered there were rumors of Li Tinto being acquired in his previous life. But in the end, it was not because of the financial crisis.
Feng Yu scratched his head. "Is it Vale or BHP Billiton? Let me guess. BHP Billiton? "
These two companies are the world's number one and number two iron ore companies, and Li Tinto is number three. Brazil's Vale accounts for more than a third of the world's iron ore production. It is almost the amount of BHP Billiton and Li Tinto combined.
That's why the world's iron ore prices are set by Vale, as they are the industry leader. But Li Tinto's second headquarters is in Australia, and they are on good terms with BHP Billiton. Both parties had been working together to fight against Vale.
Considering the factor of monopoly, even if Vale wanted to acquire it, it would not be successful. If not, they will own half of the world's iron ore production. That means this competitor is BHP Billiton?
Kirilenko had an impressed look on his face. Before he said anything, Feng Yu could guess it.
"That's right. BHP Billiton had wanted to acquire Li Tinto last year. Their initial offer was 150 billion USD, and earlier this year, it increased to more than 170 billion USD. "
"At that time, both companies' share prices were rising rapidly. But after the financial crisis, BHP Billiton's and Li Tinto's share prices fell. Both companies had not reached an agreement, and it was delayed again. "
"This also gives us a chance. If they had already reached an agreement, we really wouldn't have the chance to buy them now. Also, because of the financial crisis, the speed of industrial development is also declining. For example, the automobile industry, machinery industry, construction industry, etc., are all declining. The demand for steel has also decreased, causing the price of iron ore and other metals to fall. "
"According to the current stock price, the market value of Rio Tinto is only a little more than 100 billion US dollars. Their stock has fallen by more than 40% since its peak."
Kirilenko was overjoyed. If it was calculated according to the market value, they might not be able to afford it. Also, the economic crisis brought by the financial crisis will not last long. The steel industry is now at a low point, which means that the price of the acquisition will not be too high.
Feng Yu raised his eyebrows. Only a little more than 100 billion? This price should be lower than its true value. After all, other than iron ore, Rituo had many other mineral resources. Moreover, they had excellent technology and many rich mines.
"What about the financial situation? Li Tinto is a listed company, right? Did they make a loss this year? How much is the expected loss or profit next year? Also, check carefully to see if there are any falsifications in their financial reports. "
If the financial data wasn't real, then there would be errors in their analysis. After affecting their judgment, they might have to pay a lot more money.
Since the steel industry is declining this year, it is normal for Rituo to suffer losses. Losing money in one year does not mean this company will continue to suffer losses. After all, they still have many mines, and these are considered real estate.
But if a company that sells mineral resources suffered losses, it will be disappointing. Feng Yu also needs to reconsider if this company is worth acquiring.
"According to the financial report, they are still making profits this year. Their profits are more than 7 billion US dollars, and this is from the entire Rituo Group. After all, their profits in the first half of the year are not bad. Rituo Group has UK, Australian, and Canadian companies listed in London, Australia, and New York respectively. "
"They are the world's largest in the aluminum industry. To a large extent, they can influence the pricing of aluminum, and they have more say than iron ore. "
"Based on their listing report, their turnover this year is about 30 billion US dollars. At the beginning of the year, they planned to have a turnover of 50 billion US dollars. If it wasn't for the falling prices of various minerals, they might have achieved it. "
"Yes, BHP Billiton's turnover is about 40 billion US dollars, and its profit is about 13 billion US dollars. Vale, the leader in the iron ore industry, is worse off. They also planned to have a turnover of 50 billion US dollars, but their turnover is only about 32 billion US dollars. Iron ore prices have fallen the most, and their profit is close to 12 billion US dollars. After all, they mainly export iron ore. "
"Also, Alcoa's turnover this year is also about 30 billion US dollars, and its profit is only about 3 billion US dollars. If we acquire Rituo Group, they will also be one of our competitors. But looking at this company's profit margin, their mineral reserves are too low, and their mining costs are high. They mainly focus on processing. "
"In terms of mineral reserves, Alcoa is far from Rituo. Last year, Rituo acquired Canada's aluminum company. Due to the poor economic situation, and the need to upgrade the mines there, the mining volume has decreased. Since 2009, Rituo has dominated the aluminum industry." Kirilenko's meaning is clear.
Kirilenko's intention was very clear. After acquiring Rito Group, they would have a huge say in the aluminum and iron industries. Coupled with their original say in gold, nickel, copper, and other minerals, they could become the world's number one mining group!
After becoming the leader, they will have more maneuverability. Whether it is squeezing out the smaller ones, taking the opportunity to acquire them, or increasing the profits of the entire industry, it is all up to them.
Even when the prices of metals have fallen sharply, they can still maintain such high profits. This is the benefit of a mining company.
Only the mining, transportation, and maintenance costs are taken into account, and the rest is their profits. In fact, Polar Bear Mining Group's profits this year are also quite good. It is just that it is not a listed company and did not participate in Fortune's top 500 rankings. Otherwise, it will definitely be in the top 500.
But if it is not number one, Feng Yu does not care at all. When Polar Bear Mining Group becomes the world's number one, even if Fortune does not rank it, it will not be able to cover up Polar Bear Mining Group's glory. At that time, it will prove that Fortune is not fair at all!
"Rituo's share price is still falling, right? Why don't we buy their shares in the stock market first and gain the initiative. "Feng Yu thought for a while and made a decision.
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