Chapter 2013
Words:1642Update:22/12/31 21:24:40
The development of any big company in history is full of acquisitions and mergers. Microsoft and Coca-Cola are also the top companies in the industry.
Even Wind & Rain Electronics, Wind and Rain Appliances, etc. had acquired many small companies and merged their assets.
Most of the time, the world's number one company had acquired their position after mergers. For example, Polar Bear Minerals Group. If it had not acquired Ritto Group, how could it be where it is now?
But mergers and acquisitions will bring about serious risks. WorldCom Group had gone bankrupt because of this. Its market value was close to 200 billion USD, but one wrong step caused it to disappear in the long river of history.
That's why a company's mergers and acquisitions must be done at the right time and in the right industry. There is a more reliable way to do this. Mergers and acquisitions.
Mergers and acquisitions are based on a contractual relationship. But it is usually a big company that acquires a small company and might not even keep the small company's brand.
If the two companies are about the same size or status, mergers and acquisitions are the most advantageous. But it is also the most difficult.
Because the status of the two companies is about the same, who is willing to be a subordinate? Especially those shareholders. They all want to control the company's management rights.
BHP Billiton had not acquired Ritto Group in the past is because it lacks funds and cannot satisfy Ritto Group's management's need for power.
But this is between Beidacang Group and Hope Group, and it is easier to resolve this conflict.
Feng Yu decided to speak to Liu Yonghao personally. He hopes that Liu Yonghao will agree to the merger and make Hope Group a subsidiary of Beidacang Group. There are many areas that can be improved after the merger.
However, the difficulty was that Liu Yonghao was the one who had the final say in Hope Group, or rather, the four of them. But when it came to Beidacang Group, who would have the final say?
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"Old Liu, I had invited you here because I want to discuss the merger of Beidacang Group and Hope Group. Listen to my conditions first, and then you can decide if you want to agree. "
"I know the four of you are doing well in Hope Group. Hua Xia is the leading private agriculture company in the world and is famous all over the world."
"But have you ever thought that one day you would be in charge of the world's number one agricultural product company? And all of this is not just an illusion. "
"I know Zhou Banghan talked to you before, and you parted on bad terms with him. But I think you know what kind of person I am. Speaking of which, it's not the first time we've worked together."
Liu Yonghao and his brothers were all shareholders of Minsheng Bank. Although they were only small shareholders now, Liu Yonghao was still a director. Moreover, Liu Yonghao was the main initiator of the Cauldron cause, and Feng Yu had been particularly supportive of it at that time.
Beidacang Group and New Hope Group had a lot of cooperation in the production and sales of animal feed. Not only these, but they also cooperated in other industries. There were no conflicts between the two parties, and the benefits after the merger were obvious.
"I would like to invite you to be the Chairman of Beidacang Group. You can even be the CEO, or let your big brother be the Chairman, and you can be the CEO. All these are not a problem."
"Based on the scale of Beidacang Group and New Hope Group, Beidacang Group's market value is about three times more than New Hope Group, and its assets are about three times more than all of you. If all of your assets are merged into Beidacang Group, I promise I will give you all the benefits. You can tell me the details, and we can discuss. "
"Also, the management of New Hope Group will not be changed for the time being. When the time comes, I believe you will not go easy on them. You also do not want your business to be destroyed by mediocre people."
"Even the four of you can enter Beidacang Group's board of directors if you think it's necessary. Even if you want to groom your daughter to be the successor of New Hope Group, I will not object. "
"Zong Qingxian's daughter is working in Wahaha, Jiang Wanmeng's son is working in Wind & Rain Electronics, and Xu Lihua's son is also working in Aiwa Electronics. I will not object to the children of the shareholders of my overseas subsidiaries taking over the management of the company as long as you can prove that they are capable and can lead our company to a better development."
Feng Yu had never objected to taking over the management of a company. It was undeniable that the children of rich families could receive better education, especially learning from their elders. These were all things that could not be learned from books.
More realistically, the children of poor families could be successful, but the success rate was much lower than the children of rich families. Even the crime rate was higher among the children of poor families. But it was not reported as they did not attract much attention.
Feng Yu's conditions made Liu Yonghao even more interested. His daughter could take over the company?
"I have some influence overseas and can help you in many aspects. If Beidacang Group needs my help, I will not reject it."
"I wonder if you are interested in these conditions?"
Feng Yu looked at Liu Yonghao, hoping that Liu Yonghao would agree. Beidacang Group's scale will increase a lot and become the world's second largest company.
"Director Feng, I don't want to talk about anything else, but I believe what you said. But I remember that the controlling shareholder of Beidacang Group is Longjiang State Assets. Will they agree to dilution of their shares? "
"Also, I want to redistribute the shares. My brother's Hope Group will merge with Beidacang Group. Under normal circumstances, we will get about 25% of the company's shares. I want us to get the same amount of voting rights."
Feng Yu was giving out shares but not so much voting rights. What if Feng Yu retires in the future and does not care about these shares? Who can he turn to? Feng Yu felt it was troublesome, especially when the state-owned assets were involved.
"Old Liu, the higher-ups are more open-minded and are no longer so rigid. Look at Bing City Machinery Manufacturing Group. Taihua Holdings is the controlling shareholder, but is Bing City State Assets unhappy? "
"You all want to merge with Beidacang Group. They will get the same shares and can make more money. What's wrong with this? The state-owned assets' aim is to make money. This is the same as our investments. "
"If you agree to these conditions, then I will speak to Longjiang State Assets about the shares. I think I still have some influence." Feng Yu had donated a lot of money to Longjiang Province over the years. Furthermore, this is beneficial to the company's development, and there were positive examples in the past. Why can't they agree?
"Director Feng, I need to discuss this with my brothers. I will give you an answer tomorrow."
"Ok. I will wait for your good news."
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