Recently, information from the National Development and Reform Commission received information that Beijing Jingxi Heavy Industry Co., Ltd. (hereinafter referred to as Jingxi Heavy Industries)’s acquisition of Delphi’s brake and suspension system business and related assets had passed final approval and became part of China since the financial crisis. The first case of a successful business acquisition in the United States.
According to the M&A agreement between BWI and Delphi, BWI acquired US$100 million in Delphi related machinery and equipment, intellectual property and real estate, including Delphi's brakes and suspension business at 8 factories and 5 technology centers worldwide. 14 technical support and customer service centers and on-hand orders of hundreds of millions of dollars per year.
Establishing a new company for acquisition
Delphi, which was considered by Chinese auto and auto parts companies as the "Sweet Mastiff", was once the world's largest supplier of auto parts. After it was detached from GM in 1999, it was in automotive electronics, auto parts and system integration technology. World leader. The product supply includes GM, Ford, Toyota and other large global vehicle manufacturers. However, since the filing of bankruptcy protection in 2005, Delphi has not stopped divesting or selling its non-core business. At present, its global automotive battery business, brake processing and module assembly business, and exhaust system business have all been sold. To this end, Beijing Domestic Heavy Industries is one of the many companies in the country trying to seize the opportunity to “climb their loved ones†and to enhance their own corporate strength through acquisitions.
On March 30 this year, the name Jingxi Heavy Industry entered the eyes of the Chinese auto industry for the first time. The announcement of its acquisition of the brake and suspension system business of Delphi has caused concern in the industry. After all, when Jingxi Heavy Industries was not listed at the time, it was not a “full moonâ€. At the beginning of its establishment, it wanted to get involved in overseas acquisitions. The object of the acquisition was another popular Delphi. This kind of behavior appeared to be somewhat “young and frivolousâ€. However, after a lapse of six months, when we learned that Jingxi Heavy Industries had successfully acquired Delphi's brake and suspension system business, we had to revisit the company and find out.
It is understood that Jingxi Heavy Industry is a tripartite joint venture established on March 3 this year for the acquisition of Delphi. It is jointly funded by Shougang Group, the Beijing Fangshan District Government and the Tianbao Group, with a registered capital of 800 million yuan. Among them, Shougang invested 408 million yuan, accounting for 51% of the total capital; Fangshan State-owned operating company contributed 200 million yuan, accounting for 25% of the total share capital; Tianbao Group invested 192 million yuan, accounting for 24% of the total share capital. At first glance, there is nothing special. Why did Jingxi Heavy Industry start in the middle of such a short period of time?
There are two reasons. First, the preparatory period is sufficient. In fact, BWI’s acquisition of Delphi’s assets has already started. However, a large amount of the previous work was carried out by Tianbao Group, an indirect shareholder of BWI, which is a component-based business. Private companies have global marketing networks and rich international market experience. Over the past two years, they have engaged in long-term negotiations with Delphi through the hiring of lawyers, accountants, and appraisers, which laid a solid foundation for the successful acquisition. basis. Second, the government strongly supports it. It is understood that Beijing is trying to build a high-end industrial base for parts and components. After Beijing West Heavy Industries has completed the acquisition, relevant parties in Beijing will provide Tianbao Group with land, funds and preferential policies to accelerate the development of the Beijing auto parts industry.
Build a new brand for development
“In the context of the financial crisis, international mergers and acquisitions become more feasible. Through international mergers and acquisitions, we can effectively bridge the gap with domestic and foreign counterparts in the short term. But if only for capital expansion, it is somewhat short-sighted.†BWI According to insiders, the acquisition of Delphi is just the first step toward improving the competitiveness of its high-end parts market.
According to the M&A agreement, BWI will not move the acquired Delphi assets to China. Instead, BWI will regard the key technologies for the acquisition and acquisition of the acquisition as its current priority. Among them, Tianbao Group will play a vital role.
According to statistics, Tianbao Group, one of China's top 100 auto parts companies, has formed a globally integrated technology research and development system. It has established a central technology research and development center in both Detroit and Los Angeles. Design and development of related chassis and powertrains, as well as a number of vehicle platforms and complete technology development databases, and a mature sales network in many countries. These favorable conditions enabled Jingxi Heavy Industries to “convergence†with Delphi for the first time. On this basis, BWI has a long-term plan to build its brand-new BWI (Beijing West Industry) high-end brand.
It is reported that in the next 1 to 2 years, Delphi will still provide BWI with technical support and brand use rights related to braking and suspension systems. However, Jingxi Heavy Industry did not intend to directly “get it right†but decided to focus more on the “BWI†brand. To this end, Jingxi Heavy Industry, on the basis of the Tianbao Group, participates in international competition in relevant fields by absorbing Delphi's technology to improve its core competitiveness. At the same time, using Delphi's rich customer base, it has fully taken over its original orders and expanded new markets at home and abroad.
The insider also said: "The successful acquisition of Delphi's brake and suspension system may not be too much business at all in Delphi, but for us, this business is not small. The annual sales revenue can reach about 6 Billions to 700 million U.S. dollars, and the market is spread across several countries. Therefore, we will do our best to solidify it.â€
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