wodtke Machinery Co. Ltd.

Dance of capital in construction machinery industry


  With the evolution of the market, the capital operation has become one of the main means of development, and the merger become the most important way, large enterprises through to other enterprise mergers, realize the expansion of the scale and sales growth. Data show that the development of the capital operation and the global economy showed a positive correlation between the Internet and the global crisis after the merger, the amount of money involved declined significantly, but with the gradual development of economy, and the total amount of mergers and acquisitions gradually again, until the subprime crisis occurred, and the trend of declining. But the pace of mergers and acquisitions is expected to increase again as the global economy picks up slowly.

Analysis of global industry mergers and acquisitions

Industry is the foundation of the global economic development of the industry, although the impact of the industry and mergers and acquisitions as the financial crisis has affected the economic characteristics, but is not particularly evident, and reached a peak in 2007, the total amount of $350 billion, for the history of the new high. After the subprime mortgage crisis, although the amount of mergers and acquisitions in the industry declined, but the proportion of all mergers and acquisitions has increased, close to 12%, the highest level in history.

Obviously, mergers and acquisitions have been paid more and more attention by industrial enterprises, and the speed of mergers and acquisitions is speeding up, which shows that the scale has become the main direction of enterprise development. In the industry analysis, there is a very important dimension is the degree of market concentration, the mature industry and market, the industry's top three general market share 70%~80% (the balance, the need for innovative, or new revolutionary technology, or demand new changes). In 2009, the top six enterprises of global construction machinery accounted for 54% of the sales. The future to participate in the competition of the enterprise must through the scale gradually gain front seats, so as to obtain the stable income and profits, and to become the final winner, and M & A has become one of the inevitable choice for enterprises to win the.

Domestic construction machinery enterprise merger and acquisition course

The construction machinery industry has only been developed for 50 years in China. At present, the market of various products is basically in the development stage, including loaders, excavators and rollers. Although these products have a certain scale of enterprises, but the whole market is still in a state of instability, there is a further integration or change trend. Although the national factors and demographic dividend policy to support industry driven, domestic enterprises show certain advantages in import substitution, but the future of the disappearance of the demographic dividend and the further liberalization of the market, will make the competition more complex.

Throughout the course of development of domestic enterprises, mergers and acquisitions and the frequency is not high, many engineering machinery enterprises are state-owned properties, in identity replacement and Guotuiminjin drive, there are a lot of private enterprises, has also given a lot of foreign enterprises to enter the Chinese market opportunities. Foreign investment has come into China through joint ventures or mergers and acquisitions. In such a situation, more changes have taken place in the domestic market.

At present, domestic enterprises are still in the initial stage of mergers and acquisitions, and the following 31 examples are used to illustrate.

31 hardly ever involved in mergers and acquisitions. In 2003 31, the Group acquired Shaoyang automobile factory was established in 31 car company, enter the large passenger car industry, Hunan automobile manufacturing company acquired Huayuan Kama, and the formation of the 31 Hunan car, heavy truck, bus, car products related to crane, then few mergers and acquisitions news. Sany President Xiang Wenbo said: "the 31 group mainly consider self-development, so we did not engage in mergers and acquisitions, it can be said that basically did not engage in."

Anhui Hecha forklift industry as a domestic leading enterprises, only in 1996 after the listing to carry out 3 mergers and acquisitions, the acquisition of Anqing bridge factory, Bengbu hydraulic machinery factory and Baoji forklift factory four, then basically did not carry out capital operation. In 2009, the annual report showed that the monetary fund reached 600 million yuan, accounting receivable of 350 million yuan, accounting for 1/3 of its operating income, obviously, its capital utilization efficiency has not been fully developed.

Carefully to see if the two companies merger year, will find their time to market, this is because the listed companies in the operation of IPO, will be listed before the reorganization, with growth potential to create a competitive in the market, good management and the company, which is an important factor to consider is the elimination of trade this competition, it is not difficult to understand why these acquisitions have occurred in the vicinity of the location of the company.

Survey of listed companies worldwide, who only focus on a class of products in the market leader, the survival rate is low, these enterprises or to broaden the product line has become large enterprises, or large enterprise mergers. If domestic enterprises want to do something in the industry, then standardization and collectivization has become inevitable. The diversification of products and the expansion of industrial chain, it is difficult to have a big breakthrough without relying on capital means.

It should be said that the domestic enterprises in the development of the company, the competition level will be listed as the main means of merger and purchase is not much, even if the year is known as the capital on behalf of Delong, also located in the development of the company listed himself as industry, rather than capital investment company. The operation mode based on the development of the basic industry is the foundation of the sustainable development of the enterprise, but whether it is the best mode of development in the current market situation is still worth considering.

Liugong group and ZOOMLION have become the pioneers of domestic counterparts in this field.

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