Feng Yu does not care about how China's dairy industry will develop in the future. Anyway, it will not be the same as his previous life, where people think that overseas countries are more prosperous.
Feng Yu's headache now is that the acquisition of Li Tinto Group has been exposed!
Feng Yu had told Kirilenko and the Rothschild family that he wants to acquire Li Tinto Group quietly. This way, it will be less troublesome.
But what Feng Yu did not expect was that they did not expose Li Tinto Group, and Li Tinto Group did not publicize it. Instead, BHP Billiton found someone to expose the news.
BHP Billiton also wants to acquire Li Tinto Group. At the very least, they want to acquire Li Tinto's iron ore business. This way, they can compete with the iron ore industry leader, Vale, and even take the lead to become the mining industry leader.
But after BHP Billiton contacted Li Tinto Group, they realized that Li Tinto Group's attitude has changed drastically. Before this, Li Tinto Group maintained an ambiguous relationship with them. They neither agreed nor refused, and only said that the conditions were not good enough.
But now, Li Tinto Group directly said that these conditions are off the table!
What is the reason for Li Tinto Group's attitude to change so drastically? BHP Billiton's executives suspect that Li Tinto Group's attitude changed because of a new injection of funds.
They heard that Li Tinto Group is negotiating with Hua Xia Aluminum to strengthen their cooperation in the aluminum industry and consolidate their position as the world leader in this area.
Li Tinto Group does not have enough cash, and Hua Xia Aluminum is waving their cheques. Both sides have business dealings, and this cooperation is not too difficult.
But this does not conflict with BHP Billiton's acquisition of Li Tinto Group's iron ore business. Why did Li Tinto Group stop talking?
Unless someone wants to acquire their iron ore business or inject capital into this business.
It is common for people in the same industry to send undercover agents to each other's companies. Some core departments may have loyalty agreements, confidentiality agreements, etc., but there are many departments that are not bound by these restrictions, and they can also access such information.
BHP Billiton now knows that there is a new company talking to Li Tinto Group about the acquisition, and this company is Polar Bear Mining Group.
Polar Bear Mining Group is the property of Feng Yu and Kirilenko. The group's CEO had also contacted BHP Billiton to ask if BHP Billiton has the intention to sell it.
Many of BHP Billiton's mines are very close to the Polar Bear Group's mines. If they acquire them, they can reduce transportation costs and increase profits.
However, BHP Billiton was ambitious and planned to acquire Rito Group to expand its business. How could it agree to the acquisition of Polar Bear Mining Group?
However, BHP Billiton did not expect the Polar Bear Mining Group to contact Rito Group. Moreover, it seems that the Polar Bear Mining Group has started to acquire Rito Group's shares in the stock market. It is said that they have already acquired more than 10% of Rito Group's shares!
This attitude was very obvious. Polar Bear Mining Group had already entered the acquisition process of Rito Group. No wonder Rito Group was dismissive of BHP Billiton's offer. They had found a better buyer!
The Polar Bear Mining Group wanted to acquire more than 50% of BHP Billiton's shares. This time, it seems that they want to acquire at least 50% of Rito Tinto's shares. It can be said that they are very aggressive.
If it was another mining company, BHP Billiton will not care. But Polar Bear Mining Group is the fastest growing mining company in recent years.
In the past, Polar Bear Mining Group only owns some gold, nickel, copper, oil, coal, etc. in Russia or the former Soviet Union. The scale of these mines is not big, and the output is very low.
While other mining companies were making money quickly, this mining group's annual net profit was less than 100 million USD. At that time, it was a laughingstock. Such a large scale mine, and the profits are so low.
At that time, Kirilenko had followed Feng Yu's request to limit the mining volume and upgrade the mining equipment. Kirilenko placed a lot of emphasis on safety and invested a lot.
When the mineral prices soar, Polar Bear Mining Group's mining volume increased, and they bought many gold mines at an average premium of more than 20%.
Kirilenko's peers laughed at Kirilenko. Why are you buying so many gold mines? Are you trying to compete with other mining companies to prove who is the boss of the gold mining industry?
But soon, gold prices soared, and the value of the gold mines bought by Polar Bear Mining Group increased by more than 50%!
Everyone was dumbfounded. The mining companies that thought they were taking advantage of the situation by selling the gold mine to the Polar Bear Mining Group were now regretting their decision.
They suddenly realized why Polar Bear Mining Group's profits are so much higher than them. Their mining efficiency is very high, and their safety is also much better than them. There had never been any major accidents in the mines, and not a single miner died in the mines!
In any country, mining is a dangerous occupation. Even if it's an open-pit mine, accidents will still happen. Almost all mining industries have a "death quota." That is, the number of miners that die in the mines every year is in line with the safety standards!
Sounds cruel, right? But it's the truth. The safety investment is too high, and no mine owner is willing to invest so much. They even feel that the compensation for two miners dying every year is not as high as the safety investment. That's why they will choose to invest less.
If someone dies, I will just compensate them. Furthermore, the mine owner does not need to pay for the compensation. All the employees have insurance.
Polar Bear Mining Group's zero deaths had become a legend in the industry. It was rated as the most trusted company by its employees, and the company that its employees want to work for the most.
But this did not attract the attention of top mining companies like BHP Billiton. They felt that Polar Bear Mining Group's competitors should be the US's Freeport, Canada's Barrick, UK's Polar Gold, South Africa, Congo, or Hua Xia's gold mining companies.
After all, Polar Bear Mining Group's main mineral is gold. Energy and other metals are not in the list.
But this time, BHP Billiton miscalculated. They did not expect Polar Bear Mining Group to be interested in other mines. The last time they contacted them, they wanted to acquire BHP Billiton. After they were rejected, Polar Bear Mining Group went to acquire Ritto.
BHP Billiton's target is the world's number one mining company. In their opinion, Vale is a competitor, Ritto is a competitor, and Hua Xia is in the process of integrating their resources. They might use the entire country's resources to create a mining giant at any time.
But now, they have to admit that a company that can threaten them to become the world's number one mining company has appeared. It is not the competitors they thought before, but the Polar Bear Mining Group, which they have never paid much attention to.
If this company were to take over Ritto, then BHP Billiton's dream of becoming the world's number one mining company will be completely shattered.
At this time, BHP Billiton made a choice. That is to expose this matter to attract more competitors. At the same time, it will attract the obstruction of their peers. No one in the same industry will be willing to see Polar Bear Mining Group become the industry leader. They can profit from it, or at least mess up this matter!
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