"If the two companies merge, how will the equity be divided?" Liu Dong asked after a long silence.
"After asking a professional appraisal agency to evaluate all the assets of the two companies, divide their respective equity according to the net asset value!" Rudolf stared at Liu Dong's eyes and said.
Although the idea of bringing together Arcelor Group and Dongfang Iron and Steel Group suddenly came to him when he saw Liu Dong in India, the ambitious Rudolf was extremely firm on this idea. He knew very well that if
If this plan can be realized, his influence within the Wittgenstein family will be even greater, which will be of great help to him in taking over the power of the family in the future.
"I understand! However, I need time to think about this matter!"
"Of course! But I hope you can give me accurate news within a week." Rudolf did not expect Liu Dong to agree immediately.
"no problem!"
"Also, if you have time, you should go to Europe as soon as possible. My father wants to meet his future son-in-law in person!"
"After arranging the things at hand, I will rush there immediately!" Liu Dong said with a hint of embarrassment.
"Okay then, I'll leave first!"
"I send you!"
After sending Rudolf away, Liu Dong calmed down quickly. Let’s not talk about Helen’s matter. Regarding what Rudolf said about the merger of Arcelor Steel Group and Dongfang Steel Group, he had already made a “bad” mark in his mind.
.
Liu Dong knew very well that in terms of net asset value, Dongfang Iron and Steel Group was definitely inferior to Arcelor. Not only was it inferior in terms of steel production capacity, but it was also inferior in terms of scientific research strength, number of patent registrations, and reserve of senior talents.
A level.
Therefore, if the two companies merge, Hanhua Group's shareholding in New Steel Company will obviously be a minority. As a result, Liu Dong and his Hanhua Group will lose their right to speak in New Steel Company.
This is something Liu Dong never wants to see!
But if he does not merge with Arcelor Group, Liu Dong cannot remain indifferent in the face of the wave of mergers and acquisitions in the international steel industry.
After sitting back on the sofa and thinking for a while, Liu Dong took out his phone and called.
"Chairman?"
"What's wrong, Lao Fang? It's only been a few days and you can't recognize my voice anymore!"
"How is that possible? I'm just a little surprised why you called me so late at night? This is the first time since I took over Dongfang Iron and Steel Group!" Fang Guochun said with a smile.
"That's because you have led Dongfang Iron and Steel Group to develop well, so I don't need to worry about it!"
"Haha, when did the chairman become so good at praising others!"
"Okay, enough of the jokes. Lao Fang, as the president of Dongfang Iron and Steel Group, I would like to hear your views on the future global steel industry and Dongfang Iron and Steel Group's future development plans!"
Liu Dong's words instantly made Fang Guochun on the other side of the phone frown. He knew that Liu Dong's call late at night was definitely not unintentional. But he never thought that it would be such a big proposition at first.
Fortunately, these two questions are also things that Fang Guochun often considers, and it is not difficult to answer them. But the real difficulty is whether his answer can satisfy Liu Dong?
But no matter what happens in the end, there is no time for Fang Guochun to prepare at this moment.
Therefore, after a brief consideration, Fang Guochun took a deep breath and said in a calm tone: "Although the steel industry is called a sunset industry in the international community today, steel, as the most basic and important building material, is
The most indispensable in the national economy. The difference is that ultra-large steel enterprises with low energy consumption, low emissions, high added value, can continue to survive and achieve sustained development. On the contrary, high energy consumption, high emissions, and high pollution
, steel companies with a single product structure and a scale of less than 3 million tons will eventually be eliminated. Therefore, ambitious steel companies around the world are now conducting cross-border mergers and acquisitions. Maybe in a few years we will be able to see steel production reaching 70 million tons.
A super steel trust with tons, 80 million tons, or even more than 100 million tons has appeared!"
"go on!"
"Well!...Based on the current development trend of the international steel industry, I think our Dongfang Steel Group cannot lag behind. Moreover, effective cross-border mergers and acquisitions can also obtain the patents and steel formulas of the acquired steel companies, as well as more outstanding scientific research talents,
This will effectively supplement the shortcomings of our Dongfang Iron and Steel Group and promote our development...!"
"Since you said that, you must have researched the acquisition targets, right?" Liu Dong said after a brief silence.
"Yes! Originally, I planned to wait until this year's annual meeting to report to the chairman. By then, the third phase of the construction of the Yan*tai Steel Plant of Dongfang Iron and Steel Group would be completed. However, now that the chairman has asked, then I
There’s no need to wait any longer!…After the group’s long-term investigation, we have identified two acquisition targets!”
"Both families? It seems like your ambitions are not small, right?"
"Haha, compared to Mr. Zhang from Xantong, we are much less ambitious!" Fang Guochun said with a hint of envy in his tone.
He is also the leader of the company, and he has already been able to win the approval of the chairman to acquire Yahoo with a huge sum of up to 50 billion U.S. dollars. In comparison, he is much inferior.
"There is no specific comparison between industries. If Dongfang Iron and Steel Group develops well, I will not be stingy with investment."
"I understand Chairman!"
"Just understand. Now let's talk about the two steel companies you are interested in?"
"Hmm!... One of these two steel companies is located in China and is the Hangzhou Iron and Steel Group; the other is located in the Americas and is now the largest steel group in Brazil - the Gerdau Group!"
"Hangzhou Iron and Steel, Gerdau Group?"
"That's right!"
"If I guess correctly, Hangzhou Iron and Steel should be a state-owned enterprise, right?"
"Yes! It is a state-owned steel enterprise affiliated to Hangzhou City!"
"Since you know it, do you think that with the current popularity of the domestic steel industry, it can be successfully acquired by us?"
Liu Dong's concerns are not unreasonable, especially under China's unique economic system. There are really few cases of large-scale state-owned enterprises with good economic benefits being acquired by private companies.
"Others may not be able to do it, but we have a 60% chance!"
"Sixty percent chance?"
"That's right! The current annual output of Hangzhou Iron and Steel is only 4 million tons. Although the benefits are good, it can only rank behind 30 among the many large state-owned steel companies in the country. If we expand production capacity after successful acquisitions,
Conditions, I believe it will not be difficult to convince the Hangzhou city government, which hopes for economic development and tax increases in the area. Of course, some company shares may need to be paid in the middle!"
Having said this, Fang Guochun couldn't help but slow down his tone. He knew Liu Dong's domineering style in business management. Although the shareholding reform was carried out last year, more than nearly 80% of the shares of Dongfang Iron and Steel Group still pass through Hanhua Commercial Bank.
A series of cross-shareholdings such as Hanhua Holdings and Standard Chartered Bank are controlled by Liu Dong.
"Don't think of me like Taotie. If the acquisition of Hangzhou Iron and Steel can really promote the development of the group, I won't be stingy about giving up some shares!" Liu Dongdao.
"Thank you, Chairman. If that's the case, I'm 80% sure to successfully acquire Hangzhou Iron and Steel!" Fang Guochun said excitedly.
"After the acquisition is successful, how do you plan to develop?"
"It is still divided into three phases like the Yan*tai Steel Plant, and will have a production capacity of 30 million tons by the end of 2008 at the latest! By then, the Yan*tai Steel Plant will be responsible for the market north of the Yangtze River, while the Hangzhou Steel Plant will be responsible for the market south of the Yangtze River.
market! In this way, our domestic steel layout will be completed!"
After thinking for a while, Liu Dong nodded, "I agree to this acquisition plan! What are you going to do with Gerdau Group? As the largest steel company in Brazil, it is not easy to acquire it!"
Liu Dong still has a certain understanding of Gerdau Group, which is ranked 12th in the world.
It is the largest long steel manufacturer in the Americas. The group has 5 major business departments and 24 factories in more than a dozen countries including Brazil, Argentina, Canada, the United States, and Uruguay, with an annual steel output of 13.5 million tons!
Acquiring it is not as simple as Liu Dong taking the initiative to merge Peru's Chimbote Steel Plant into Dongfang Iron and Steel Group. Reviews from government departments will be one of the main factors affecting this acquisition.
"I know this acquisition is not easy. However, the Gerdau Group is burdened with heavy foreign debt, and the equity holders sold at a high price. As for the Brazilian authorities, I think if we can squeeze in more money, it should be
not a problem!"
Fang Guochun stated in one sentence the biggest hidden danger in Brazil’s political situation—‘rampant corruption’!
Since the democratic election in 1989, corruption and corruption by politicians is not a new topic for Brazil, and every president has been troubled by corruption scandals.
Moreover, corruption by politicians has a historical tradition in Latin America. Politicians are in office just to make money, and Brazil is no exception.
Before becoming ministers, politicians usually served as members of parliament or ran for public office in local government. In a series of elections, they have invested a lot of capital. Therefore, once they take office, many people want to get their capital back. Many senior officials
Officials will take advantage of their power to place supportive relatives and friends into important positions in government departments. These politically appointed officials have not passed the civil service examination, have not received good professional training, and lack professional ethics. They often become high-risk groups for corruption.