March 28, the second largest city in Sweden, the Volvo headquarters in Gothenburg, China chairman Li Shufu, Geely Automobile (front left) and Ford Motor Company CFO Liweisbusi (front right) at the signing After the handshake. Zhejiang Geely Holding Group Co., Ltd. the same day Ford Motor Company with the United States officially signed in Gothenburg, Sweden Volvo acquisition agreement. Xinhua News Agency reporter Wu Weishe
BEIJING, March 28 9 pm the evening of 28 Beijing Xinhua, China Zhejiang Geely Holding Group Co., Ltd. and Ford Motor Company in Gothenburg, Sweden signed the agreement on acquisition of Volvo Car Corporation. Concerning this the largest overseas Chinese private companies settled the case of car purchase.
Ministry of Industry and Information Technology Minister Li Yi will attend the ceremony.
Volvo Cars to Ford in 1999 was 6.4 billion acquisition. January 2008, Geely had Ford on the proposed acquisition of Volvo, but Ford was not the intention to sell, the proposal to nothing. With the deepening crisis in the U.S. auto industry, by the end of 2008, Ford announced its intention to sell Volvo. Geely hampering international competitors, in October 2009 was designated as the priority bidder and Ford last December and the acquisition of all the important agreement on commercial terms. Two sides after 3 months of negotiations, the final agreement will be signed today.
Geely Group, according to the planning, acquisition of Volvo, will be set up in the domestic production capacity of approximately 300,000 of the new plant, so that Volvo’s global production nearly doubled, and strive to achieve in 2011, Volvo Cars profitability.
Mr. Li 1,800,000,000 U.S. dollars, “married” Volvo
Last year’s “Bitter Love”, Geely finally got his wish to fund the 1.8 billion U.S. dollars to Volvo “marry go home.”
At 9:20 Beijing time, Geely Auto Group Chairman Li Shufu, wore a black and white tie news conference in Gothenburg, Sweden, the scene left in his suit with a collar on the other auspicious emblems. In the large screen behind him name of Geely, Volvo and Ford three companies Logo.
About 20 minutes ago, Geely Automobile formal agreement with the United States Ford, Geely Automobile to 1.8 billion U.S. dollars to buy the Swedish car company Volvo 100% of the shares. Prior to the trade rumors in the 1.8 billion purchase price to 20 million.
Minister of Industry and Information Technology Li Yizhong, Mulally, Ford Motor chairman, attended the signing ceremony.
1.8 billion U.S. dollars for China’s largest ever overseas acquisition of the automotive industry. Last year spent 200 million U.S. dollars BAIC Saab car part of the assets acquired; and West Beijing Heavy to 90 million U.S. dollars acquisition of certain assets of Delphi, and now these records have been broken.
Were heard from last March to acquire Volvo since the stock has moved from a lucky dollar to close at 4.1 HK yesterday, turned 4 Fan.
Union release
“Today is a milestone in the history of Geely is also the history of Volvo’s milestone.” This is Mr. Li’s opening remarks. Volvo Group CEO Stifen and Lewis Booth, Ford Motor CFO (Lewis Booth) points out in the left and right side of Mr. Li.
Before the start of a news conference, Mr. Li and Booth are required before the group photo in a Volvo S60, This just unveiled at the Geneva auto show new car, Volvo is likely to be as lucky after the merger, the first in the country running a model.
Press conference, the Swedish Volvo Car Corporation, said trade unions to support the planned acquisition of Geely, Geely and Ford for the purchase agreement signed release.
To cater for the interests of trade unions, Mr. Li said that Volvo will long continue to reside in Belgium and Sweden. However, he quickly corrected himself and stressed the need to “always remain so.”
Obviously, Geely management attitude towards the Volvo factory in Europe, let the Volvo side reassured. “We got all the information we want.” Volvo is one trade union organization representing the interests of the company in charge layers, “leader” trade union leader Glen Magnuson told reporters, “We support the acquisition. ”
Delivery of the third quarter
Currently, the acquisition of all funding in place, while Geely is also ready for future business development of Volvo Cars of working capital loans.
In addition to stock acquisitions, the agreement also involved a Volvo car, Ford, Geely, and intellectual property rights between the three parties, parts supply and R & D to reach the important provisions. These agreements will ensure the independence of Volvo car operations, to continue the existing business plan and future sustainable development.
As for the establishment of factories in the Chinese market plan, and Mr. Li said that “the establishment of several factories in China, when the building has not been set, however, must be entering the Chinese market, the development of the Volvo is very important.”
While the entire conference, and Mr. Li have appeared a bit nervous. After entering the interactive session, Mr. Li described a number of interesting ideas. He spoke of the importance of the Chinese market and to make a tiger than Volvo, must return to nature.
“Must be restored predation ability, not only for viewing in a cage. The company has 80 years of history, its technology, brand, Zhiliang and trained a team must release the energy out.” Says Li Shufu.
As for the specific delivery time delayed by the second quarter, three quarters, Mr. Li said that apart from the Chinese government approval, it will also involve more than the national government for approval. In fact, last December, the Chinese Ministry of Commerce said it will support the auspicious of the acquisition of Volvo.
Mr. Li’s new challenge has begun
Concern and attention in the outside world, China Zhejiang Geely Automobile Company acquired the ultimate success of luxury car brand Volvo has become a major international automotive industry. Li Shufu, Geely head of population in “rural guy,” married “international star”, writing the history of the development of a national car legend.
This is a victory for Mr. Li is also a victory for the lucky team. Leaving aside the many around the Geely controversial acquisition of Volvo, just look at M & A itself, Li and his auspicious reason to be proud of.
Whether the acquisition of Sichuan Tengzhong Hummer deal fails, or the acquisition of Volvo’s lucky win in Germany, the background is the degree of deepening economic globalization. Reflected in the auto sector, global mergers and acquisitions and the pace of industry consolidation is accelerating. With overseas acquisitions, is also China’s auto enterprises to accelerate the development of one of the important path.
Prior to the acquisition of Volvo, Geely already started from a low-end brand in the high-end development to strategic transformation. This transformation, in the background, “humble” the lucky case, it is not easy. With Volvo’s European old aristocratic image and technical level, how much change can be lucky or the existing pattern of China’s auto industry.
From the perspective of the individual entrepreneur, while M & A is a high-risk path to achieve growth, but once the cross-border mergers and acquisitions with the explosive growth of the enterprise, then the value of the individual entrepreneurs, to upgrade, also has a geometric pace. From a hero of the bush to the world-class entrepreneurs, perhaps deep in the heart of the soaring ambitions of Mr. Li’s.
In any case, for a local car brand, this is a great acquisition. Geely and Volvo’s “Cross of Love” can bear fruit, it would be not only the achievements of China’s automobile industry, the achievements of the international automobile industry.
However, the fragrance of champagne while intoxicated people, but one can not blindly drunk. For the unlucky, the case for Mr. Li, to close at its Volvo, the new career path is the starting point is the beginning of new and difficult challenges. How to face challenges, overcome difficulties related to this “Love Cross” in the future fate.
Geely talk aside first. In recent years, China’s financial, industrial enterprises “sea” case there are many – which is of course the ever-growing Chinese economy a major performance. With the country’s overall economic strength is gradually increased, some companies grow rapidly. But frankly, Chinese corporations combined with excellent success, really small. This situation in fact is not surprising that academic research has long had: on average, the returns from the acquisition are significantly lower than the cost of capital.
Perhaps the “unhappy family is unhappy in its own.” Each “sea” of the enterprise itself is different, different problems, so the frustrations and challenges are not the same. However, one thing is common. Overseas M & A, as an international business operations, the situation faced by domestic investment than the more complex and also more traps. Compared to domestic operations, including legal risk, currency risk, collection risk, management risk of moral hazard, have all a challenge.
Some companies, in domestic development has been relatively smooth, so the “sea” battle full of confidence. Pride is certainly commendable, but dreams are often friable. Since many companies do not have the ability to manage outside, or on the cultural differences and understanding the lack of in-depth analysis, or understanding of the local labor relations is not enough, originally thought to be alone is to conquer the capital acquisition side of the romantic idea be real idiot.
A classic case of cross-border M & A failure is a TCL Thomson’s expedition. Li Dongsheng said that TCL proprietor: Globalization must go this route, do not go today, go tomorrow. Such words reflect the belief in and pursuit of Li Dongsheng, but he later said “of course not the pace too fast, too fast will be wrestling.” Because of the loss TCL Thomson business digest considered far from adequate, but also because of investment in the country’s labor relations are poorly understood, underestimated the strength of the local union, ultimately failed.
In the automotive industry, also has a well-known failures that SAIC bought Ssangyong. After several years of trials, the case eventually ended regret. It was concluded that the reason for different corporate culture of both sides, and in the face of serious problems, lack of SAIC’s experience in resolving the crisis brought about by the subsequent financial crisis, this acquisition also ended in failure.
Perhaps Li and his team are determined before the acquisition of Volvo, it has been on the journey of Chinese companies overseas M & A clear understanding of all the hard chest. Even so, Geely’s acquisition of Volvo, still can not avoid the reality and future of critical questioning. When the two sides finally signed an option agreement to discuss the purchase price or have little significance in itself, but Geely “snake swallowing” Volvo can digest well, or a question mark.
Currently, Volvo union shift in attitude, expressed support for the acquisition of China Geely, which is an important sign Geely to remove obstacles. However, the Nordic tradition of strong trade unions, will be the test of time in the future management of the auspicious and adaptability. Meanwhile, the corporate culture integration, operations management capabilities overseas, are waiting to sort out one by one unlucky team, and upgrade. Opportunities and challenges and to challenge even greater than the opportunity, this is Mr. Li must face reality.


