First of all, Brazil's Vale does not hope that the Polar Bear Mining Group will successfully acquire the Lituo Group this time. Vale is the world's largest iron ore supplier, owning more than one-third of the iron ore deposits, and is the leader in the iron ore industry. Boss. Tian'lai novel Ww'W. 『⒉3TXT．COM
At present, the demand for iron ore in China is soaring. Although it is closely related to Russia, Russia's iron ore reserves are not high and cannot meet China's market demand. China's iron ore production is not high either. Then it can only be imported.
Vale, BHP Billiton, and Lituo are China's main iron ore importers. While China's relationship with Australia is average, it has close ties with Brazil in recent years, and they have cooperated a lot.
If Polar Bear Mining Group successfully acquires Lituo Group, then Feng Yu, as a Chinese, will have inherent channel advantages in this area. China will definitely import a large amount of iron ore from Lituo Group, and they will no longer have Vale. It's over.
Even if the Li Tuo Group cannot meet the requirements, it will still import BHP Billiton. Because many of BHP Billiton's mines are relatively close to those of the Li Tuo Group, there can be great cost savings in transportation. Vale will be kicked out of the company in one fell swoop. Out.
Vale then began to contact China. One was hoping to sign a long-term supply contract, and the other was to test whether this matter was related to steel-making companies in China.
China already knows that the Polar Bear Mining Group, in which Feng Yu has a stake, is acquiring the Lituo Group. It is said that it has entered the negotiation stage, and it will definitely purchase from its own people in the future.
One is that money is made for his own people, and the other is that Feng Yu has never cheated his own people. They feel more at ease doing business with Feng Yu, and when they are in urgent need of ore, Feng Yu will definitely give them priority in supplying it.
Therefore, China and Vale both said that we have no plans to sign a long-term supply contract because iron ore prices have been unstable recently and they want to wait and see. In fact, they have rejected Vale.
Vale took a look and found that the Chinese steelmaking company must know about this, and they wanted to say goodbye to Vale.
Huaxia is Vale's largest customer. If they lose it suddenly, it will have a great impact on their iron ore sales. At this time, Vale began to contact other mining companies to obstruct the Polar Bear Mining Group.
It's very simple. As long as they make separate quotations for the subsidiaries of the Lituo Group and take over the mines of the Lituo Group, then the Lituo Group will be worth mentioning.
None of them can do the entire acquisition of Lituo Group. Vale may be able to raise the money, but it will definitely not be able to pass the local government or the European Union. After acquiring the Lituo Group, they will have a complete monopoly on iron ore, which will hurt all iron ore or steel importing countries. Benefit.
But it would be no problem if the Lituo Group's mines were separated and purchased separately by everyone. Vale will not be blocked from expanding a little bit, other companies can also expand, and Lituo Group will become history.
How much premium can your Polar Bear Mining Group offer, 20% or 30%? If we, the mining groups, join forces, we can achieve a 50% premium!
Anyway, if it is apportioned to these companies, each company will only spend an extra two to three billion US dollars, but it is still cost-effective to kill an extremely powerful competitor.
After Kirilenko learned about this, he immediately called Feng Yu. He was very worried. Why did those companies join forces under the leadership of Vale
After listening to Kirilenko's description, Feng Yu asked calmly: "Brother Ji, do you think this matter can be successful?"
Kirilenko was stunned for a moment, couldn't he succeed? They can pay more, isn't this a good thing for Lituo Group? The shareholders of Lituo Group should be very happy.
"Brother Ji, think about it. Vale is taking the lead. Not to mention the extra 20-30 billion US dollars, the extra 20-30 billion US dollars, as long as it can swallow up the Lituo Group, it will be worth it. But they It’s simply impossible, no one will agree to let them have a monopoly on iron ore deposits.”
"Their plan of separate acquisitions seems very reasonable. We will divide the Lituo Group, and then the shareholders of the Lituo Group can make more money, but you think about the operability of this matter."
"First, if we acquire the Lituo Group as a whole, then the headquarters of the Lituo Group will definitely not be moved, nor will its three major group companies. This will reduce the intensity of local obstruction."
"They want to split up the mines and enterprises of Lituo Group. How should they be divided? How many companies and countries are involved? Can they really get through these obstacles?"
"Also, two to three billion U.S. dollars is nothing to Vale. Their annual profits are tens of billions of dollars. Even if it is a premium of two to three billion U.S. dollars, as long as it has significant benefits for business expansion, then It’s also acceptable.”
"But those small mining companies, such as the world's second-ranked aluminum group, American Aluminum, their profits last year were only more than 3 billion U.S. dollars. If they are given such a premium all of a sudden, their work has been in vain for a year, and their business It can’t be expanded much, do you think they will agree?”
When Aluminum of Canada was sold, many mining groups such as Lituo Group, Huaxia Aluminum, and American Aluminum were competing. In the end, Lituo Group won the deal at a high price. After integrating resources, it became the world's number one in the aluminum industry.
American Aluminum did not succeed in the acquisition because it had no money, otherwise they would be the leader in the aluminum industry. Now let them, a company with an annual profit of only three billion US dollars, acquire some aluminum mining assets at a premium of two to three billion US dollars. They also need to have this money.
The current economic situation in the United States is not good. It would be good if the American aluminum industry can guarantee profits. How can it dare to make big moves again
Not to mention other mining groups. None of them have an annual profit of more than 5 billion US dollars. How can they have the money to acquire the business of Lituo Group
During this period, they will not have very good results if they increase their stocks. If the price is high, they cannot sell them at all. If the price is low, they will suffer losses. How to raise funds
Vale taking the lead is just a joke. Big companies have always swallowed up small companies. When did you hear that small companies joined together to carve up a large company that was still profitable and had good assets
"So you think this thing can't succeed at all, it's just a smoke screen put out by Vale?" Kirilenko asked.
Feng Yu sneered: "This is actually not even a smoke screen, because as long as the management of Lituo Group are not all idiots, they will never agree. Our biggest competitor, or in other words, our only competitor, is BHP It must be trusted, other companies are nothing to worry about!”
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