Every economic network-Daily Economic News: Sany Heavy Industry acquires Intermix GmbH in Europe, and the overseas mergers and acquisitions of construction machinery giants are mixed

Source: Every Economic Network-Daily Economic News Reporter: Zhuo Zhiqiang

Just when the outside world continued to question its capital chain, Sany Heavy Industry (600031, SH) made another overseas move.

Yesterday (July 24), Sany Heavy Industry announced that its holding subsidiary German Putzmeister (commonly known as "Elephant") reached an agreement with Mr. Hans-George Stetter to invest 8.1 million euros to acquire the third largest concrete in Europe held by the counterpartyMixer trucksand a 100% stake in Intermix GmbH, a manufacturer of special mixing plants.

Coincidentally, on the 6th of this month, XCMG also quickly completed the acquisition and delivery of a 52% controlling stake in the German concrete giant Schweiying. Qingke data show that in the first half of 2012, the Chinese market completed 422 mergers and acquisitions, the machinery manufacturing industry in the first place, completed 50 mergers and acquisitions, accounting for 11.8%.

So, is the report card of these giants "hunting" overseas ideal?

Acquisition of Elephant "Semi-Annual Report"

Since January this year, after spending money to "take" the global concrete machinery giant Putzmeister into its arms, Sany Heavy Industry has taken a new step of expansion. Putzmeister acquires 100% of Intermix GmbH.

It is understood that Sany Heavy Industry will take advantage of this acquisition to enrich Putzmeister's product portfolio, extend the industrial chain, and form a good synergy with the company's existing business, significantly enhance the company's R&D and innovation capabilities, marketing service level and international brand influence in the field of concrete mixing machinery, and further enhance the internationalization level of the company's concrete machinery.

It is worth mentioning that in the past month or so, news about the tight capital chain of Sany Heavy Industry has repeatedly appeared in major newspapers.

"Judging from Xiang Wenbo's statement, Sany Heavy Industry will have mergers and acquisitions overseas in the near future, which shows that Sany Heavy Industry's capital chain is not as tight as imagined." A researcher at Huatai Securities, who did not want to be named, told the "Daily Economic News" reporter.

In the first quarter of this year, Sany Heavy Industry made a big move, spending 324 million euros and CITIC Fund to acquire 100% of the shares of the German construction machinery giant Putzmeister.

What makes the outside world question is whether Sany Heavy Industry's series of acquisitions will lead to indigestion?

"The core idea of Sany integration elephant is actually very simple, in short, it is to 'superimpose advantages'. While fully maintaining and giving full play to the existing advantages of elephants, Sany Heavy Industry's own advantages are injected into elephants to form mutual benefit and win-win results. Wang Hexu said.

"The concern is well-intentioned and a wake-up call for us, but at the moment the results are still in place. From January to June this year, Sany Heavy Industry's exports of all products doubled year-on-year, and its business grew by more than 10% after the completion of the merger and acquisition of Putzmeister. This year's profit growth is as high as 79%, and the net profit figure for June is also beautiful. Xiang Wenbo revealed.

Lose in hake, but gain in herring

"In the first half of this year, the domestic market was relatively weak, but the growth of Sany Heavy Industry's overseas market exceeded 100%, especially the acquisition of Putzmeister enhanced Sany Heavy Industry's influence in the international market, and the company's overseas business share will increase significantly in the future, and overseas markets will become a new growth point for the company." The aforementioned * deep researcher said.

It is understood that after the merger, Elephant still maintains a high degree of autonomy, and Sany Heavy Industry has also promised not to fire an employee due to acquisition. After the acquisition, Sany also fully integrated the business systems of the two sides, and the high-quality products of Elephant and the low cost of Sany Heavy Industry formed a cost-effective synergy. There will also be more technical exchanges among scientific researchers, and German "masters" will be more able to play a role.

"Sany Heavy Industry has greatly reduced the cost, cost and energy of management, which is a positive factor for management and business development, and has an excellent role in promoting." Wang Hexu said.

"Our acquisition of Elephant is not like the acquisition of Chinese brands by some foreign giants before, but to eliminate a global brand, we are creating a new acquisition model. While maintaining the elephant's own advantages, it will slowly infiltrate the foreign * show technology into its own use. This not only consolidates the complete industrial chain, but also strengthens the construction of high-end brand image. Let the elephant travel lightly and become the main force of overseas business. Xiang Wenbo said that from the feedback from the current situation, we have not experienced indigestion.

The CIFA report card is mixed

Although the bigwigs of many construction machinery companies can't hide their pride in overseas mergers and acquisitions, the mergers and acquisitions that have been staged repeatedly have also been criticized by many people.

Economist Lang Xianping "opened fire" early in the morning. He once bluntly said that these acquired foreign companies are just a hot potato, taking Sany Heavy Industry, Zoomlion, and XCMG as an example, the three domestic giants, "I'm curious about how these three companies deal with this hot potato." ”

In this regard, Wang Hexu said that because Sany Heavy Industry's merger and acquisition of Putzmeister and XCMG Group's merger and acquisition of Shi Weiying were only completed this year, although Sany's acquisition of elephants was better than expected, the real effect remains to be seen. After all, it has been nearly 4 years since Zoomlion acquired CIFA, and its "report card" is somewhat representative, but in fact, the situation is not very optimistic.

The reporter of "Daily Economic News" checked the annual report of Zoomlion in recent years and found that ZoomlionCifa (HongKong) Holdings Limited, a company specially established for the acquisition of CIFA, has been in a state of loss for three consecutive years. In the 2011 annual report, the company's minority shareholders' interest was -222.8512 million yuan.

"This shows that CIFA still lost money last year, and this figure is only a minority shareholder's interest, and the entire loss must be more than 200 million yuan." Wang Hexu thinks.

However, Zoomlion obviously does not attach much importance to the profit and loss of data, and pays more attention to the significance of the strategic level.

The person in charge of Zoomlion once said in an interview with the media that the effect of mergers and acquisitions is not only reflected in a financial statement. Through the acquisition, Zoomlion has obtained the most advanced management methods, technologies, product lines, etc., and has improved the overall strength of the enterprise.

In fact, when talking about the effect of the acquisition of CIFA, Zoomlion also mentioned the "synergy effect" many times. It emphasized that Zoomlion has not only obtained the global marketing service network of CIFA, but also mastered the patented composite technology of carbon fiber pump truck boom and the seven-section arm technology, which has made Zoomlion's pumping product technology have a leapfrog and epoch-making progress.

This is also evident in the company's 2011 annual report. Zoomlion said, "Actively integrate global resources, and the synergy effect with CIFA is further revealed; Overseas sales increased by 46.24% year-on-year, exceeding the growth rate of the company's main business income. ”

　Overseas "hunting" controversy

Coincidentally. About half a month ago, on July 6, another construction machinery giant, XCMG, also achieved positive results.

With a total investment of 220 million euros, it completed the closing of a 52% controlling stake in German concrete giant Schweiying. At the ceremony held on the same day, Wang Min, chairman of the group, excitedly shouted out the bold words of "reshaping the pattern of the concrete machinery industry".

At the end of June this year, some media reported that Zoomlion is currently negotiating with a number of overseas companies to speed up the company's overseas merger and acquisition plan based on the CIFA acquisition.

In addition, Weichai Group's acquisition of Ferretti and Liugong's acquisition of Poland's HSW Construction Machinery Division have also been completed this year.

Liugong Investor Relations Management Department told the "Daily Economic News" reporter yesterday that in Liugong's chess game, the HSW Construction Machinery Division can be used as a strategic location in Europe, "This acquisition has been half a year now, and the results we have harvested are still very significant, one is the product line has been expanded, and the loader and excavator have been expanded in the past; Second, the morale of employees has been greatly improved. ”

He further revealed that the HSW Construction Machinery Division, which lost more than 60 million yuan last year, has now seen a significant improvement in performance and has been profitable in the past two months.

But in this wave of mergers and acquisitions, there is no shortage of "pouring cold water". Ouyang Cheng (pseudonym), an executive of a construction machinery company interviewed by a reporter from the "Daily Economic News", said, "It's completely a name, because everyone likes to compare with each other." He even bluntly believes that in terms of the cost of overseas mergers and acquisitions paid by domestic enterprises, I am afraid that "it will not be recovered in a lifetime".

"The foreigners who are in charge of the world's construction machinery giants are very smart, if they can make money, will they sell it to you?" Ouyang Cheng told the "Daily Economic News" reporter that it is difficult to make money in overseas markets now, taking Europe as an example, the high-rise buildings, bridges that should be built, and infrastructure that should be built are almost built; As for the expansion of the African market, the current local situation is not stable. They (referring to the acquired world construction machinery giants) equipment for many years, must be updated, then they have to invest again, but also to solve the high local labor costs.

However, an unnamed machinery industry analyst at Huatai Securities has a diametrically opposed view: "If you look at it from the perspective of future development, the timing of mergers and acquisitions is very good." This kind of opportunity will not necessarily come across in the next 10 or 20 years. For example, if Sany Heavy Industry buys elephants, if it is not a financial crisis, if the market is good, why should people sell it to you? ”

Wang Hexu agreed, "If it weren't for the financial crisis, foreign giants would not necessarily sell to you, and it would be impossible to buy them at a price of more than 200 million euros." ”

Taking the acquisition of the world's three giants as an example, public information shows that before the acquisition, Putzmeister was the leader of the industry, Shi Weiying was the second, and CIFA was the third.

In the view of Huatai analysts, for Sany Heavy Industry and Zoomlion, it is mainly to bring brand influence, and for XCMG, it is mainly to optimize its product structure.

"XCMG is not strong in the concrete machinery sector, and it went to acquire the world's second-ranked Shi Weiying, and its synergy is stronger. Sany Heavy Industry and Zoomlion have gained different results with the help of their overseas channels. Wang Hexu added.