Tiehang Zhua was originally two shipping companies, namely Tiehang Shipping in the UK and Tiehua Shipping in the Netherlands. The two companies merged in 1996; currently, Tiehang Zhua has two headquarters, namely
London and Rotterdam.
Currently, the world's largest container shipping company is Maersk, accounting for about 10% of the global market share; followed by Times Shipping, accounting for about 7.5% of the global market share; and the third is China Railway Corporation, accounting for 6% of the global market.
; The fourth place is Mediterranean Shipping, accounting for 5% of the world.
Of course, 'container shipping' is only part of Times Shipping's assets. Others include ships worth more than 10 billion US dollars, as well as oil and gas transportation business, ports, aircraft leasing, logistics business, etc.
In terms of assets, Times Shipping can buy four or five Maersk groups.
Smith, the president of Tiehang Zhahua, was sitting in his office, looking at an acquisition invitation letter seriously, with an unpredictable expression on his face.
It turns out that Times Shipping issued an acquisition invitation and hoped to receive a response from China Railway Company and send them corporate information.
After Smith read the invitation letter, he immediately felt the importance of the matter.
At present, the European and American economies are in a downturn, and shipping will naturally have a certain impact; Times Shipping's acquisition invitation at this time is somewhat confusing (in fact, most acquisitions are at the peak of the market).
And Smith also knew that Times Shipping had successively annexed many well-known shipping companies and quickly became the world's second largest container shipping fleet. Its decisive style and high bids were incredible.
Because of Times Shipping's style, Smith knew that this matter needed to be decided on the board of directors, because Times Shipping might win over Tiehang Zhua at a very good premium, which would undoubtedly be a good thing for the current shipping situation and the shareholders of Tiehang Zhua.
The conference room of Tiehang Zhahua.
Smith told a group of directors and senior executives about Times Shipping's acquisition offer.
"So, our next topic is whether you have any idea of selling Tiehang Zhahua. If so, you need to give Times Shipping a copy of the information and let them take the initiative to make an offer."
A director first said: "Of course we have to give Times Shipping information and ask them to quote. Shipping has been sluggish for a long time, and Times Shipping has always liked to acquire at a premium. We can also see what their offer is like. If it meets everyone's expectations, we will discuss accepting it.
or not.”
Another director said: "Yes, send information to Times Shipping first, and then invite Maersk to join the bidding when we get the first quotation from Times Shipping. The choice is ours. If the price premium is high, why don't we sell it?"
Woolen cloth?"
"It makes sense! The shipping cycle is too strong. Although it is best to sell when the shipping peaks, considering that shipping has not peaked for more than ten years, it is unknown when the next peak will come. If there can be a lot of
With a high premium, we are equivalent to selling the company at its peak. I remember that the premium for Times Shipping was quite large before."
"Yes, as the third largest container company, we are just like Orange Telecom back then, which was sold at a sky-high price by Lin Zuhui and Li Chaoren. Similarly, if Times Shipping takes over China Railway Company, then they will be number one in the container field.
name; if Maersk wins the iron and steel company, then Maersk will consolidate its position."
Directors and senior management have expressed their agreement to make contact. After all, the environment and acquisition targets all determine this. This may be an opportunity.
December, Hong Kong.
In the conference room of New Era Group, Lin Zuhui was meeting with several senior executives to discuss the acquisition of Tiehang Zhahua.
"Have all the information been researched?" Lin Zuhui asked directly.
Morris, the president of Times Shipping, has information about the assets of "Tiehang Zhahua". Of course, it is just simple information. It is impossible for others to give you truly detailed information for such a large-scale acquisition. After all, both parties are still container shipping companies.
Competitors.
However, although the information is simple, there is no need to suffer, because as the negotiations between the two parties deepen, they will naturally understand each other better and better; moreover, when signing the contract, they will review it item by item in detail, and finally sign it under the witness of a lawyer.
Morris said: "After research, the value of Tiehang Zhua is about US$1.5 billion, which is affected by the sluggish market. Considering the importance of Tiehang Zhua to us, we recommend an initial quotation of US$1.7 billion.
The premium is about 13%.”
Of course, this price is only tentative. Sometimes acquisitions are not as simple as the surface value and involve too much. Moreover, the shareholders of China Railway are not stupid and will not sell the company at a low price during the shipping downturn. After all, the business and routes are very valuable.
of.
Lin Zuhui nodded and said, "Then report the price to them and observe the subsequent development."
Morris said: "Okay. We have prepared an acquisition team in Europe and are very well prepared. The team has already conducted official lobbying activities in the European Union. I believe the resistance will not be great."
Shipping routes involve monopoly, and if politicians make a fuss about it and regard it as a threat to national economic security, it will inevitably lead to failure.
At this point, Lin Zuhui's team is very versatile and experienced, and such mistakes will not happen.
To put it simply, after many politicians in Europe and the United States retire, Lin Zuhui's companies will extend an olive branch and invite them to serve as consultants or directors of their companies. Even though they have retired, their personal connections are still there, and sometimes they can be of great use.
At the same time, for every acquisition, Lin Zuhui will have his subordinates prepare in advance, hire financial companies, lobbying teams, etc., and strive to complete the work in great detail.
For example, this time he planned to acquire China Railway Corporation and Unocal, an American oil company. Lin Zuhui had already asked his subordinates to carry out the layout for nearly a year and did a lot of research and investment in connections.
Of course, the acquisition of China Railway Corporation involves less political impact, while the acquisition of Unocal is a very big public relations event.
These preparations can only be regarded as "harmony", and we still have to wait for the "right time and right place", that is, the acquisition conditions created by historical emergencies.
After discussing the acquisition of "Tiehang Zhahua" with other senior executives, Lin Zuhui dismissed the meeting. As for the acquisition of the oil company, Lin Zuhui was not in a hurry and would take the next one first.
Moreover, entering the oil field is not mandatory, he just has a speculative attitude.
Even if the acquisition of Unocal Petroleum Company is successful, Lin Zuhui will not do anything that harms the United States because he cannot afford to offend. Therefore, Unocal's management will not be changed, technology will not be leaked, the headquarters will not be moved, and it will even be listed in the United States. Ultimately,
Carry out sale arbitrage.
It is not strategic investment, but value investment. Make a lot of money and leave.
Currently, New Era Group has nearly 180 billion Hong Kong dollars in cash flow on its books. This is after investing 3 billion U.S. dollars in Era Airlines.
Lin Zuhui also hopes to invest these funds within two years, just in time to usher in the period of rapid global economic development from 2003 to 2008.
Maersk.
"What? Times Shipping is negotiating to acquire China Railway Holdings? Are they crazy? They are making large-scale acquisitions at this time." When they learned that China Railway Corporation intends to release the news, they invited Maersk to participate in the bid for China Railway Corporation.
Java, Maersk McKinney Muller said to the president of Maersk with a look of disbelief.
Although Maersk McKinney Muller is 84 years old at this time, he is still the chairman of Maersk, and Charlie is the president of Maersk.
Charlie respected Mueller and said: "Yes, once they complete the acquisition, they will surpass our market share and reach 13.5%."
Old Maersk paced back and forth in the office, unable to make a decision for a while. After all, shipping has been sluggish in recent years. It is obviously unwise for Maersk to make large-scale acquisitions at this time.
However, now that New Era Group is aggressive and intends to surpass Maersk, it is obvious that he is annoyed again.
"Isn't it beyond the monopoly line?"
"No, the monopoly line is at 16%, they are still close!"
"It's really annoying. Is that young man really very optimistic about the shipping industry? He must have invested nearly 20 billion US dollars in the past three or four years to complete his title of 'World Shipping King'."
"Yes, but they did not borrow money. It is said that the debt ratio is very low!"
"What a freak!"
Facing an opponent with a large amount of cash flow, there is no solution.
In recent years, Lin Zuhui has made great moves in shipping, which has also led to the acceleration of the overall development of Hong Kong's shipping industry. Many shipowners saw that Lin Zuhui was ordering a large number of new ships in South Korea and the mainland, and they also joined in. After all, Lin Zuhui's success is a weather vane.
It can be imagined that if world shipping recovers in 2003, Xiangjiang Shipping will become the biggest winner.
Lin Zuhui is not worried that if he joins, the number of ships will increase, which will affect the process; in fact, the impact will not be big, because South Korea's shipbuilding industry has such a large output, and he has ordered a large number of ships, which means that other people's orders
Postponed.
Moreover, Times Shipping has also acquired a large number of second-hand ships in the market, which will lead to a disguised monopoly on future ship leasing.
From 2003 to 2008, the shipping market was in short supply, with too few ships and too many orders. The global economy was developing rapidly, so it was difficult to make major changes.
Old Maersk asked: "What do you think?"
Charlie said: "We can only try to make a quotation, but it should not be too high. After all, if the price is too high, coupled with the economic downturn in Europe and the United States, Maersk will cause a series of troubles."
Old Maersk nodded and said: "You have considered it very carefully. In this case, I will do it according to your wishes!"
"OK"
At this time, there are only a few people who dare to bet, but almost no one dares to bet.
Everyone knows to buy the bottom, but in fact everyone likes to chase the high. In the previous life, Maersk acquired the China Railway Company in 2005 when the shipping industry exploded.
After all, whether this bottom is a bottom or not, how long will this bottom last?
Many people know that the Internet is a historical trend, but not many people dare to invest now. After all, only those who can survive the cold winter have the courage.
Fast forward to 2002.
In January, people in the shipping industry have recently been paying attention to the merger of "Times Shipping" and "Tiehang Zhahua", and many people are paying attention to this matter.
Once the acquisition is successful, Times Shipping will become the undisputed market leader, and the global shipping market will become more monopolized and usher in a reallocation of shipping capacity and markets.
Until mid-January, the outside world had not been able to obtain any facts about the acquisition from Times Shipping or China Railway Company, although many industry veterans had revealed the inside story to the media.
However, signs of a sharp rise in Tiehang Zhua's stock trading prove that Times Shipping is in merger negotiations with Tiehang Zhua.
The famous British shipping daily "Lloyd's Daily", which first disclosed the acquisition, said: "This is the largest and most challenging transaction in the field of container transportation to date, and will create the world's largest shipping giant.
Its scale is much larger than the traditional giant Maersk."
This judgment was confirmed at an unexpected speed.
On the day the report was published, China Railway Corporation submitted a statement to Euronext, Europe's second largest stock exchange, confirming the negotiations.
Netherlands, Headquarters of China Railway Corporation.
Morris took his team to Rotterdam, which is the real headquarters of Tiehang Zhonghua. This is where Tiehang Zhonghua was listed.
He came this time with great confidence because the boss gave him a very large financial space; from this point of view, the boss should believe that shipping will usher in a boom.
In the conference room.
Morris said confidently: "We are very eager to merge the two shipping companies and we have great sincerity. Therefore, our latest offer is US$2.2 billion, which is also our final offer."
After the price was announced, Tiehang Zhahua and other senior executives flashed with joy.
The premium is about 40%, which is probably a high price during the boom period of shipping. And who knows whether there will be another boom period for shipping. After all, there has been no boom period for shipping in the world since the mid-1980s.
Who dares to bet?
Smith said tentatively: "Maersk is still bidding, so I can't give you an accurate answer yet!"
Morris said with a smile: "It is said that Maersk has no intention of making any more quotations. They even let us take advantage of it."
Smith's expression froze, and then he smiled awkwardly.
The two sides once again engaged in a war of words. The negotiations have made great progress, and it is expected that the real intention will be completed in the next few days.
Late January.
The two companies officially announced that Times Shipping will acquire China Railway Group in cash at a price of 42 euros per share, for a total amount of 1.68 billion euros (2.2 billion U.S. dollars). The agreement is planned to be reached within a few weeks, and all terms of the cooperation will be finalized.
The memorandum will be announced in the first half of February, and China Railway Corporation will convene a special shareholders' meeting in late February. According to both parties' expectations, the acquisition will be completed between March and April.
A reporter interviewed Times Shipping Morris and asked whether the matter was confident that it would pass EU review.
Morris said confidently: "We believe we will not encounter too big a problem. We will work hard to safeguard the rights and interests of European employees and promise not to lay off employees."
The timing, location, people, and Era Shipping have all been mastered, and the acquisition is a certainty.
Hongkong.
The media have reported on the incident of "Times Shipping" acquiring "Railway China". After reading this, citizens felt that it had greatly boosted the morale of Hong Kong's economy.
Times Shipping has invested nearly 20 billion US dollars in shipping in the past four years, driving the entire Hong Kong shipping economy. People from all walks of life are looking forward to Times Shipping taking Hong Kong's shipping industry to a new level.
As a rival of Hong Kong's shipping industry, Singapore has felt strong pressure and has begun to frequently use Temasek Capital to acquire global shipping assets.
Cheung Kong Industries.
After Li Chaoren read the news in the newspaper, he couldn't help but look thoughtful.
He was thinking that Times Shipping's massive investment in shipping and aviation was obviously Lin Zuhui's behavior in buying the market at the bottom.
“Is shipping really going to explode?”
"The aircraft leasing industry is a good industry. Cheung Kong and Hutchison Whampoa can follow suit and enter this industry. However, we have invested too much in the 3G field, and I am afraid we can only make small investments."
"To be honest, I really admire his investment methods. But I can't imitate him. I believe that only monopoly industries can make a profit, such as electricity, water, 3G, and retail."
Li Chaoren shook his head. He felt that he really did not dare to invest in shipping (ship chartering). After all, Lin Zuhui had been investing heavily for four years. If New Era Group had not made hundreds of billions of Hong Kong dollars in the capital market in those years, the company would have been
That's troublesome.
In Hong Kong, there are only two people who can be called 'international businessmen', and that is Lin Zuhui and Li Chaoren.
As for the Kwok Desheng family, the Lee Shau Kee family, and the Zheng Yutong family, they will only invest in Hong Kong and the Mainland, and real estate is the absolute core.
These families did try to invest overseas. In the 1980s, they had a lot of real estate investments in Canada, Singapore, and the United States. However, they later found that the overseas returns were too poor, so they almost stopped investing overseas on a large scale.
90% of the investment is placed in China.
In the comparison between Lin Zuhui and Li Chaoren, Lin Zuhui has already surpassed Li Chaoren by a lot. At present, Li Chaoren's achievements are only in retail (Watson's), telecommunications (mobile business 2g\3g), and ports.
Lin Zuhui's achievements are among the top in the world in real estate, hotels, shipping, investment, manufacturing, technology, culture and other fields.
The Lunar New Year is approaching, and Lin Zuhui is also busy inspecting various companies. Generally speaking, the companies continued to grow steadily last year.
After the merger of the media groups, there has been huge potential. Last year's profit exceeded 8 billion. If the news is released, it will immediately set off a huge wave.