Of course, Ralph's words were not said casually, but they really planned to acquire the supermarket group entirely. Of course, it is not a special purchase, but a North American supermarket group in which special purchase is a stake. It currently ranks eighth in North America and has an annual turnover of more than 30 billion US dollars.
If this supermarket group is acquired and merged into Taihua Supermarket Group, it can once again increase the scale of Taihua Supermarket Group and reduce costs at the same time.
Feng Yu asked Ralph and the others to acquire it in the name of Fengyu Holdings Group, and then sell it to Taihua Holdings Group. After being merged into Taihua Supermarket Group, Feng Yu's equity in Taihua Supermarket Group could be expanded. Proportion.
Dee Brown was furious. This supermarket was an important piece for them to enter the North American market and an important means for them to expand their scale.
They plan to take full control of this supermarket group and then acquire some supermarket groups of similar size. Then they can return to the ranks of the world's three major retail giants, once again squeeze out the Taihua Supermarket Group, and leave behind those behind them. Polar Bear Supermarket Group is hot on its heels.
Now it seems that Fengyu Holdings Group is determined to compete with them.
What he didn't know was that Ralph not only contacted this supermarket group, but also the shareholders of several supermarket groups took the initiative to contact him and planned to sell some shares to him.
Some have lost money on other projects and need funds to make up for it, some are planning to invest in other industries and raise funds, and some have seen supermarket sales decline and they need new shareholders to stimulate them.
So Ralph has many choices, not just shares in this supermarket.
But too few shares of other supermarkets were sold, making it difficult for Feng Yu to be satisfied. Even if you can't hold a controlling stake, you can't become a small shareholder. You still have to occupy more than one-third to avoid the other party's absolute control.
Feng Yu plans to open up and expand the advantageous businesses of Fengyu Holding Group and Taihua Holding Group after making a big profit this time.
In this way, through cross-shareholding, the ownership structure will become more complex and more stable.
Not only in retail, Kameda Masao is also involved in automobiles, IT, electronics, etc., which are of course the advantageous industries of the island country.
Many of Feng Yu's companies may have the best-known brands and the highest brand value, but their scale is not.
For example, Fengyu Electronics and Fengyu Electrical Appliances are still far behind compared with Sini Group and Songxia Group.
Others also make electronic appliances, but others can develop very well in derivative industries and become the world's top large companies.
In terms of factory scale alone, there is a big difference between Fengyu Electronics and Fengyu Electrical Appliances.
If we can acquire a top electronic and electrical company at this time, it will be of great benefit to the expansion of scale.
The same goes for cars. Although Bingcheng Machinery Manufacturing Group is the boss of China, compared with the entire world, it is not among the top ten in terms of sales or brand value.
If we can acquire some car brands at this time, we can use the other party's channels to promote Songjiang Automobile. After five to ten years of development, Songjiang Automobile can truly occupy that market.
When enterprises develop to a certain scale, they often embark on the expansion route of acquisitions and mergers. Because when a company develops, it usually focuses on one market first and then slowly expands the market.
But when you are focusing on one market, your peers are also focusing on other markets. You want to expand the market, and your peers also want to expand the market.
In many cases, the products of both parties cannot completely lead the other's. Each has its own advantages and both have loyal consumers. At this time, competing for the market may cause losses to both parties.
So what is the most common solution in Europe and the United States? Merger!
If one is a small company and the other is a big company, then the big company must want to acquire the small company. Sometimes, mergers and acquisitions are also adopted.
But if the size of the two companies is not much different and no one can guarantee that they can acquire the other, then a merger model will be adopted and the strengths of the two companies can be combined to make all shareholders make money.
A typical example of this is Daimler-Chrysler, which is the result of the merger of two very powerful car companies.
After the merger, the original shareholders of the two companies become shareholders of the new company, so that shareholders can make more money. The only thing they have to compete for is the power and brand of the combined company.
Among them, there are many examples of small things swallowing big things.
Take WorldCom, for example, which is the most typical example of a small company swallowing a big one. But as a result, the company quickly became the world's second largest network and communications group in two or three years, with a market value of nearly US$200 billion.
But the reality is that they have more than 40 billion US dollars in debt and suffer huge losses every year.
In order to maintain their stock prices, they had to take desperate risks and make false accounts. Then after Feng Yu found someone to expose it, the company's stock price plunged rapidly, and eventually embarked on the road to bankruptcy.
Those former shareholders of WorldCom were once on the rich list, but many of them later went bankrupt.
Feng Yu used a different method. He did not plan to acquire. He planned to acquire and use cash to acquire.
First of all, he has a lot of cash now, and after this time, he will have more cash, which must be spent.
Acquiring well-known companies in the same industry and expanding the industrial scale of your company is the safest way, which is much better than entering an unfamiliar field. One is more convenient to manage, and the other can also integrate superior resources to make the enterprise stronger.
Unless this unfamiliar field has important strategic significance, such as the shipping industry, then it is another matter.
Among them, the ones that need to expand the most are those businesses that have not become the number one in the world. It is already number one in the world. If it continues to expand, there will be a lot of trouble.
For example, it may be suspected of being a monopoly, and it may be boycotted by various countries.
But if it’s not No. 1 in the world, and it’s not the same after the acquisition, it will be much easier. Feng Yu’s plan is to turn some companies into the second or third in the world, and then through their own development, become the first in the world.
This not only avoids some possible troubles, but also provides some challenges and motivation.
In other words, it is more difficult for Feng Yu to become fat in one bite. For example, in the automobile industry, if Feng Yu wanted to become the world's number one, he would have to acquire a company four times the size of Songjiang Automobile. Not only would he be able to swallow up a small company, but the amount of funds required would also be astronomical.
However, it is still very possible to acquire some car brands and then slowly develop them to become one of the top five car companies in the world within ten years. Then if you slowly figure it out, you may not have the chance to become the world's boss.
These very large acquisitions cannot be carried out for the time being. Feng Yu will not spend money to acquire them at this time. After the economic crisis occurs in one or two years, it will be a good time for Feng Yu to take action!
… (To be continued.)