At the end of August 2012, German Chancellor Angela Merkel visited China and attracted widespread media attention at home and abroad. During the visit, an acquisition rumors plagued the Iron Lady because it was the largest direct investment by Chinese companies in Germany. In early September, this rumors became a reality. Shandong Heavy Industries Weichai Group officially announced that it will acquire 25% of the equity interest in KION and a majority of shares in some businesses for 738 million euros.
For Weichai Group, 2012 is destined to be an extraordinary year. In January, the reorganization of Italy's Ferretti was not over. In September, Koror’s strategic reorganization came again. Weichai intervened in the non-core business of yachts, and invested huge amounts of money in entering KION, with successive acquisitions, allowing the outside world to cast surprising eyes. , And the helm of Tan Xuguang is how to view the post-acquisition integration?
Dream Road: One dollar or multiple?
In 2005, Weichai successfully absorbed the merger of the "Tian torch" and became China's first listed company to return A shares from H-shares through mergers and acquisitions and mergers, creating the "welrywood" model of China's capital market. Since then, Weichai has entered a high-profile view of the Chinese people, and its main product sales volume has begun to reach the highest number in the world, and its revenue has also reached new heights. From a company that manufactures internal combustion engines, it has become an important part of China's equipment manufacturing industry that has a gold industrial chain for commercial vehicles. One level. However, Weichai’s goal is more than this: It is the dream of all the Weichai people that it is an industrial equipment manufacturing group that is oriented toward the entire machine, has core technologies, and is globally competitive. It can continue to develop and enter the world’s top 500 companies.
Tan Xuguang, who is the head of Weichai Group, understands that selling an engine alone does not open the door to the world’s top 500 companies.
Since the outbreak of the global financial crisis in 2008 and the intensifying European debt crisis, many European companies have been trapped in a debt quagmire. This undoubtedly brings the opportunity for Chinese companies to dip the bottom. What to collect and how to close is also a direction for Chinese entrepreneurs. Sexual problems.
Tan Xuguang, who has observed many of the world's top 500 companies, found a law: When the economic crisis broke out, those companies in specialized fields and companies with single products had very difficult days. Looking at the trajectory of Wei Chai all the way, the existing development model is easily tied to the economic development cycle, subject to the saturation of the domestic market, and trapped in the national investment policy. Therefore, the role of the single-domain industrial chain extension is a dream for the Group's development. The realization of the strategy is very limited, and the diversified strategic reorganization based on the thinking of globalization is the “seven inches†to realize the strategic transformation of Weichai Group from the existing development bottleneck.
However, with diversified strategies, when Weichai strategically reorganized Ferretti, many people, including Weichai employees, could not understand it. This is similar to the situation encountered by Sony’s acquisition of Columbia Pictures. At the time, the international business community had mixed reviews of Sony’s transnational cross-border acquisitions. However, Sony achieved its magnificent transformation through this cross-border merger and acquisition, allowing Sony to complete the leap from electronic product manufacturers to video content producers. Through the successful display of its own technological superiority in film production, it created a commercial miracle of "Spider-Man," and Sony's products have become even more powerful than Spider-Man, flying into the US electronics market.
As an industrial luxury goods, yachts are not affected by the economic cycle. Weichai can be driven by a complete investment to shift investment and consumption, and get rid of excessive dependence on the domestic market. Regarding the benefits of strategically reorganizing Ferretti, Tan Xuguang said bluntly: It was the realization of a leap in domestic brands to international brands, and successfully achieved the integration of international brands and Chinese manufacturing. Weichai has expanded its own industrial fields through this strategic reorganization, and has taken a big step on the road to brand internationalization. Really began to adjust the business structure and "transformation and upgrading."
The expansion of Weichai’s diversified strategic reorganization ideas to KION has a deeper meaning.
After spending more than 6 billion yuan to buy a German company that is deeply involved in the debt crisis, how much strategic value does it have? In the face of the questioning voice of renewed attacks, Tan Xuguang replied: “If I say Ladi, I value their brand. , then KION I value more is their technology. Through KION's technology, we step into the top ranks of the world." Behind the complex acquisition process, hydraulic core technology is the ultimate goal of Weichai.
For a long time, the hydraulic control system is the most prominent “bottleneck†that restricts the development of China's equipment manufacturing industry. In 2011, the import value was nearly 30 billion yuan. Behind the short board of domestic companies is the huge demand of the hydraulic market. As far as Weichai itself is concerned, the mastery of core technologies means more opportunities and markets. The hydraulic system is associated with the transmission system. When the Weichai industrial chain is extended downstream, the hydraulic system, as a core component, will fully contribute to the development of the industrial chain and will win absolute competitive advantage for the company.
Based on this, it is no exaggeration to say that Weichai’s sales revenue target of RMB 10 billion for five years in the hydraulic business field and even “the creation of a Weichai power in the hydraulics field†within 10 years.
Diversified overseas mergers and acquisitions also created a more competitive "golden industrial chain" for Weichai. Commercial vehicles, construction machinery, and ships are the three industrial chains with the engine power system as their core, and the advanced hydraulic system as an extension of the industrial chain. This is the layout of the Weichai Group.
In a time schedule for Weichai, a revenue of 200 billion yuan will be realized in 2015, while Ferretti Yachts, Kaiou Forklifts and Linde Hydraulics will be able to realize incremental parts during the integration process.
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Post-acquisition integration road: smug
Cross-border mergers and acquisitions and strategic reorganization are short-cuts for the development of international companies. The dream of 1+1>2 has made numerous companies go ahead. But this shortcut is also full of bumps and thorns. Too many companies fail to complete their initial dreams. The famous "Seven-seven Law" once pointed out that 70% of mergers and acquisitions did not achieve the desired commercial value, and 70% of them failed to integrate after the merger.
The Daimler-Benz company in Europe and Chrysler in the United States once carried out the largest merger and acquisition case in the history of the world’s automotive industry. People once thought that DaimlerChrysler became the most competitive giant in the automotive industry, but this alliance was regarded as a natural match. Ultimately, it was defined as the most failed merger. The media commented on them as such: Corporate culture is the key point. In mergers and acquisitions, this cannot be done. Others are excused.
What are the unique and forward-looking opinions of Weichai, who has gone through three overseas acquisitions, in the post-acquisition integration?
“Cultural integration is not a culture that merges another culture, but they collectively extract a new culture that adapts to the globalization of the group.†Tan Xuguang said that when he acquired Ferretti, Mr. Ferretti told him: I can listen to everything. Yours, there is one. I cannot deprive you of my annual vacation. "There are different customs in a country and ten miles to change the rules." In fact, cultural differences exist everywhere. An inadvertent move may lead to a misunderstanding. Ordinary words may even trigger a conflict. The integration of culture is a hurdle for any company that has undergone cross-border mergers and acquisitions. Only fully respecting the culture of this country and the culture of this enterprise is the premise to give full play to its advantages. To seek common ground, one must first recognize differences.
For some fierce disputes or conflicts in the integration process, Tan Xuguang talked about the appointment of Ferretti CEO. The two reorganizations before Ferretti ended in failure. Weichai's management believes that the CEO is responsible. Changing the talent will give everyone more confidence in the company. For whom? After the communication between the two parties, the person in charge of the North American market within the group is activated. The European media generally believe that the new CEO's inauguration is beneficial to the sustainability of Ferretti's management.
In the strategic reorganization KION's integration, Weichai's goal is not to destroy Germany's manufacturing, but to combine its brand, technology and Weichai's market resources to fully accelerate the brand in China, and even global emerging markets. The promotion. At the Kerry 3,000 employees conference, this view of Weichai was fully recognized by employees and labor unions.
Through strategic reorganization, Weichai has succeeded in grafting international brands and manufacturing in China. However, whether Chinese companies can integrate well-restructured top brands is a huge challenge. Apart from cultural integration, the company's management and operation methods and follow-up development strategies are of crucial importance. Weichai's post-acquisition integration road still has a long way to go.
In 2012, Weichai’s industry experienced an overall downward development. “The whole industry is in such an environment. The decline is a foregone conclusion. I said that when the industry grows, we have to go one step ahead of others. When we drop, we compare ourselves to others. Taking a step back, this is where the advantages are reflected," Tan Xuguang said. From taking one step at a time to one step backwards, we have seen the strategic vision and forward-looking of Weichai's international development. With the gradual completion of the reorganization strategy, the development of Weichai's globalization is more and more worth looking forward to, because people clearly see that no matter how the world economic landscape changes, the dream is deeply rooted in the hearts of Weichai people, and the Weichai led by Tan Xuguang. The group walked confidently and firmly on the road leading to its dreams and never slacked off.
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