The domestic parts and components companies have become the characteristics of global mergers and acquisitions model

By the end of November 2010, China’s largest auto parts M&A will be completed and a 100-year-old steering gear company Nexteer will be transferred to Pacific Century Motors (“Pacific Century Motors”). ), the acquisition transaction price was also lowered from $ 450 million to 10 million US dollars to 440 million US dollars. This is another case in which the Tianbao Group, an auto parts company, acquired as a shareholder after the acquisition of Delphi's global research and development and production system for automotive suspension and brakes as a shareholder of Beijing Jingxi Heavy Industry Co., Ltd. in March last year. From the background of the acquisition of buyers, there are quite a few characteristics of “the state-owned enterprises invest and the private enterprises contribute”.

The US$440 million acquisition of GM’s subsidiary has recently led to a tense trade relationship between China and the United States, which has not affected the progress of this auto parts overseas M&A transaction. On July 12th, after the signing ceremony of Pacific Century Automotive’s acquisition of Nexteer’s global steering and transmission business at the General Motors headquarters in Detroit, the 104-year-old General Motors subsidiary will soon be re-invested in Chinese companies.

Nexteer, formerly known as Saginaw Steering Gear, has been manufacturing steering gear for decades. It has 22 factories, 6 engineering centers, and 14 customer support centers worldwide, with a total of 8,300 employees. Affected by the financial crisis, Nexteer's turnover dropped sharply from $2.1 billion in 2008 to $1.6 billion.

According to informed sources, since April of this year, private equity mergers and acquisitions companies in South Korea and the United States have been in contact with Nexteer. Eventually, Chinese buyers win with the price and all trade in cash.

The auto industry analyst Zhong Shi believes that General Motors is eager to return to the stock market and wants to get rid of the burden.

Xu Caihua, an analyst at CCB International, believes that the acquisition of parts and components companies indicates that the Chinese auto industry is heading towards a deeper level of development. In particular, manufacturers of stand-alone passenger car parts and components need to cooperate with vehicle manufacturers to design products that not only have higher requirements for their production quality, but also test their overall design capabilities.

Feng Chong, Bohai Securities Auto Industry analyst, said that "this is definitely a good thing." Feng further analyzed that at present, China's overall parts and components lack the ability of independent research and development, from the perspective of mastery of technology, with its acquisition of overseas vehicle companies, It is not as good as acquiring key component companies. In addition, compared with the labor issues of overseas vehicle manufacturers, parts and components companies are relatively simple and operate more smoothly after acquisition.

For the purchase of 440 million US dollars, more people in the industry said that "it is difficult to simply judge whether it is worthwhile." Xu Caihua said that the key is whether or not to acquire more advanced design technology, because the parts of the new models are required to be designed independently. Matching, if not advanced, is difficult to develop. However, in the near term, with the weaker US dollar, cash purchases are more cost-effective than loans.

Beijing "Zhuangzhuang", Tianbao Deli According to informed sources, the acquisition of Nexteer is the continuation of Delphi's global automotive suspension and brake business.

The Chinese purchaser of this acquisition is Pacific Century Motors, which was jointly established by Beijing Yizhuang International Investment and Development Co., Ltd. ("Yihuang International") and Tempo Group. It was established in February 2009 with a registered capital of 30. 100 million yuan. Yizhuang International is affiliated to the State-Owned Assets Management Office of the Beijing Economic and Technological Development Zone. Pacific Century Auto is wholly owned by the latter. The latter is also an investment and financing platform established by the Beijing Municipal Government in the Development Zone.

Tianbao Group, a private parts and accessories company, once again appeared and focused a lot of attention. In March 2009, Tianbao Group once acquired a research and development and production system for Delphi's global automotive suspension and brakes with 24% of the company’s shareholding in Jingxi Heavy Industry for US$100 million.

Founded in 1984, Tianbao Group, which was founded in Anhui, was once hailed by the industry as a “parts legendary” company. Tianbao has become a global OEM customer service integrated auto parts supplier. And has a number of vehicle platforms, a complete database of technological development, has been able to undertake the vehicle's design work, as well as chassis and powertrain part of the design and development work.

In the financial crisis, Tianbao Group once suffered huge losses due to foreign exchange contracts and was in prison: One of its listed companies, Beitai Venture (02339.HK), was liquidated by the Hong Kong Stock Exchange in January 2009 and became a car crisis in the financial crisis. The first company in which the parts industry fell. In May of this year, Tianbao Group transferred a 24.89% stake in ST Songliao (600715.SH), another listed company, to Yizhuang International, totaling 490 million yuan. Xuan Shouzhao, director of the investment and development department of Tempo Group, once expressed to the media that he believes that the two successful cooperation with the government in overseas mergers and acquisitions will greatly help Beitai Resumption. An insider close to Tianbao Group disclosed that Tianbao itself was short of money. In the two mergers and acquisitions, Tianbao Group had very little cash input, and the funds were more from Yizhuang International, namely the support of the Beijing Municipal Government.

The acquisition of Nexteer, quite a "state-owned capital, private power" model characteristics, it is learned that before Jingxi Heavy Industries acquired Delphi-related businesses, its dozens of people sent to negotiate team from the vast majority of Tianbao Group. The model of state-owned capital and private capital contribution was copied in the acquisition of Nexteer's business.

It is reported that after the National "Auto Industry Adjustment and Revitalization Plan" was issued, Beijing Municipality simultaneously formulated measures to accelerate the development of the automotive industry, including news of favorable international M&A of parts and components. In the spare parts industry, overseas acquisitions have once again become a speeding development. shortcut.

Zhang Jian, Director of the Department of Mechanical and Electrical Industry of the Ministry of Commerce, pointed out that the homogenization of competition in China's auto parts companies has caused serious overcapacity.

Statistics show that the OEM matching ratio is less than 30%. The concentration rate of the top 100 parts and components companies is less than 1%. At present, domestic auto parts companies rely on low-cost expansion, lack of R&D funding, and lack of innovation. The average R&D cost of an enterprise is only 0.6%, and it cannot form a development capability.

According to statistics in 2007, the total R&D expenditure of 500 auto parts companies is only 17% of that of Bosch.