Chapter 467 Confident M&A Team
The starting point of the Second Eurasian Continental Bridge is Lianyungang in China and the end point is the Port of Rotterdam in the Netherlands. It is located at the mouth of the Rhine River and the Maas River and is known as the gateway to Europe.
Looking down from the plane, you can see many rivers in the city, with various boats parked along the river.
Cars drive on the urban streets, and unique windmills can be seen everywhere.
What impressed Guo Yang most was that the windows on each floor of the residents had colorful flowers.
From this we can see how much the Dutch love flowers, and it makes sense for them to be known as the Kingdom of Flowers.
In the hotel, Guo Yang and Yu Qin met Miao Lanchun, who had arrived early, and Ren Fu, the head of the European plant extraction business.
"Thank you for the hard work of traveling all the way. Boss, Mr. Yu, let's go have a meal first and have a night's rest to adjust to the jet lag."
"Okay, let's eat something first and talk about the current situation."
Ren Fu has been stationed in Europe for several years and knows the place well. He can arrange both Chinese and Western meals.
Guo Yang looked at the menu and finally ordered the simplest Lanzhou Ramen. The taste was surprisingly good, the spicy pepper was very fragrant, and the beef portion was sufficient.
“Are there any ramen restaurants in Rotterdam?”
"Yes." Ren Fu said with a smile: "I asked my nephew to open a ramen restaurant here. The ingredients are all brought from China. It is very popular!"
"No wonder it tastes a bit authentic. I'll have a chance to visit your nephew's shop in two days."
Guo Yang ate the noodles with a sigh of relief, and occasionally a piece of meat came out, which made him feel quite refreshed.
Everyone else also had their own food, but Ren Fu was chewing the cheese slowly and seemed to be enjoying it.
Xu Shi noticed Guo Yang's eyes, and Ren Fu said: "The average height of the Dutch is the highest in Europe. Some people say it is because they like eating cheese and riding bicycles."
Yu Qin on the side curled his lips, "Why, you still want to grow taller at your age? Aren't you afraid of high cholesterol?"
"This is also a work requirement."
Ren Fu said: "Why do the Dutch consume so much dairy products? Because the livestock industry is developed, and the support of the livestock industry is its strong feed industry!
If you want to acquire Provimi, you must not have a detailed understanding of its industrial upstream and downstream relationships. ”
After hearing Ren Fu talk about work, the rest of the people ate less loudly and raised their ears to listen.
The Netherlands is the most densely populated country in Europe. It is small in area and low-lying. A quarter of its land is below sea level and there is not much arable land.
Agricultural production conditions are inherently inadequate.
If it were an ordinary small country, it might just accept its fate and import grain honestly.
But the Dutch have worked hard to become the world's second largest exporter of agricultural products, flowers and bulbs, eggs, fresh milk, beef, sheep and pork, apples and pears, vegetables...
A proper modern agricultural power.
In the agricultural composition of the Netherlands, animal husbandry accounts for 50%, with almost one pig and one cow per capita.
The large number of livestock has also given the Netherlands a huge demand for feed, which has created a developed feed industry, of which silage corn and pasture are important components.
According to information available to Ren Fu, there are 72 compound feed manufacturers in the Netherlands, including 5 large enterprises.
Such as Taico Group, Agrifirm, DSM...
Among them, Taico and DSM are both one of the six largest feed industry giants in the world and are also intended acquirers of Provimi.
Provimet focuses on the field of animal nutrition, mainly providing high-quality premix products, with business in more than 30 countries.
Premix is a feed product that has a variety of nutrients, additives and pharmaceuticals mixed together in advance.
Different formulas can meet the nutritional needs of animals at different stages.
It cannot be used directly to feed animals, but is used as an important component of complete compound feed.
On the surface, the production threshold for premixes is very low, with two to three thousand domestic companies producing it.
But fundamentally speaking, this is a high-tech product, but most companies and products are just fake.
In this field, Provimet ranks among the top five in the world and is also one of the upstream suppliers of many Dutch feed companies.
The number of potential companies interested in it is unknown.
"In China, in addition to Jiahe, there are also media reports that New Hope is also interested in this acquisition."
Ren Fu provided a new piece of information that surprised everyone present.
Guo Yang joked: "It seems that New Hope is not very satisfied with the service provided by Quan Wang!"
Yu Qin smiled and said, "The media is just taking advantage of the heat. It is unlikely that New Hope will get involved. Even if it does, I won't be afraid."
Competition in the feed industry today is cutthroat.
The gross profit margin can be maintained at 5%, which is already very good in the eyes of some companies.
The acquisition of Provimax requires at least more than 10 billion in funds. Even if New Hope has the idea to bring it to the table, it is likely to be insufficient.
Miao Lanchun also finished eating at this time, wiped his mouth, and said: "National grain and feed have been making big moves in China recently, including South China, East China, and along the Yangtze River Basin."
Under the leadership of Ning Gaoning, Guofang launched a full industry chain strategy more than two years ago.
The feed industry is the downstream of soybean and corn processing, and is naturally within the national grain territory.
Yu Qin raised his eyebrows, "In the past two years, National Grain has been making constant mergers and acquisitions at home and abroad, and its debt ratio is very high. It should not get involved."
"The main opponents should be Taico and DSM."
Guo Yang coughed, "Don't forget Cargill, this may be the strongest hidden competitor."
Cargill in the original time and space has established a huge animal nutrition empire, but its market share at this time is still very limited.
The expansion of its business scale began with the acquisition of Provimax, and then it completed several horizontal mergers and acquisitions before forming its final size.
Later National Grain has caught up with other grain merchants and ranked second in the world, but there is still a huge gap with Cargill. Well, it is still less than half of National Grain.
Among them, animal nutrition is one of the main areas that widens the gap. But at this moment, Yu Qin and others obviously have not paid enough attention to Cargill.
Yu Qin said: "According to the information provided by Avic Investment Bank, Cargill may have problems with financing, and it has not conducted such large mergers and acquisitions in the past."
Miao Lanchun also added: “In addition, every important decision of Cargill must be discussed with the shareholders of the sixth largest Cargill family, and can only be implemented after approval.
There are no Cargill family members in Cargill's management today. ”
Cargill is a private company, not listed on the market, financing difficulties, investment decisions are cautious, 100 family members hold about 90% of the shares...
Each shortcoming was mentioned.
Most come from analysis by investment banks and various external consulting teams.
This is the traditional perception of Cargill.
Guo Yang thought for a while and reminded him again. Yu Qin and Miao Lanchun also said that they would discuss it with the M&A team again.
In addition to Jiahe's team, the M&A team also hired investment banks, financial, legal, tax consultants, and public relations companies.
Among them, Avic Investment Bank is the core.
There is no mistake in every song, one post, one content, one 6 one, one book, one book, take a look!
Kerston Cole is a senior mergers and acquisitions consultant at the investment bank. He has cooperated with Golden Harvest several times. He also led Tianhe's acquisition of Dow Brazil.
But this is the first time Guo Yang has seen Kerston.
An old white man with slightly gray hair and obvious wrinkles, but his figure is not out of shape. He is wearing a black suit, a white shirt and a blond tie.
At this time, the old man greeted Guo Yang energetically, shook hands and said hello.
"Wow, Guo, you are so young. Such a young rich man should appear in the Internet field, not agriculture."
"Haha, Kerston, you look very energetic, and you seem to be full of confidence in this merger."
The two complimented each other before entering the conference room, which was already full of people.
This is a pep rally.
There were dozens of people attending the meeting, which can be called a huge team. The meeting was hosted by Kerston and Yu Qin, and Guo Yang was also on the stage to observe.
"There is only one week left to submit the bid application, but our employer has been preparing for two years."
"Quanwang's advantage is that it has obvious advantages in plant extracts, which can be used as additives and raw materials for premixes."
"Experiments have proven that after using Quanwang's plant extracts as raw materials, the quality advantages of the premix are extremely obvious."
"This is a point that must be repeatedly emphasized to the acquired party in every merger and acquisition process..."
Kerston assigned tasks to each team. It was obvious that he was more determined to win than Quan Wang and did not take potential opponents seriously at all.
On the one hand, it is based on his understanding of Jiahe.
In terms of financial status, Jiahe's debt is very low and its cash flow is sufficient. Avic Investment Bank is also willing to provide loans to such high-quality customers.
This is important, as acquisition bids are a huge factor in scoring.
In addition, Jiahe has no premix business in the world, it is completely blank, and there is no business conflict with Provimi.
Instead, it provides the highest quality ingredients and feed additives.
Moreover, they contacted Provimi two years in advance.
In two years, Quanwang's additives have already conquered Provime's branches and R&D departments.
On the other hand, based on his knowledge of potential competitors.
Although the two major groups, Taico and DSM, mainly generate revenue from concentrates and compound feeds, they also have strong competitiveness in the animal nutrition and premix businesses.
Also in the Netherlands.
There are too many overlapping businesses, and once the acquisition is completed, there may be an oligopoly and layoffs are inevitable.
Taico and DSM cannot even pass the test of management and shareholders.
As for Cargill, he is just a cautious old man, and financing is his biggest weakness.
What's more, in recent years, the domestic grain trade in the United States has suffered a heavy blow, with both revenue and profits declining. The acquisition of Provimi is also a manifestation of its pursuit of new opportunities.
At the same time, there is also a small amount of business overlap, but this has little impact.
But in terms of acquisition investment, decision-making response speed, and product complementarity, it is definitely not comparable to Jiahe.
Looking around, Kerston couldn't find his opponent.
While others are still preparing to bid, he is already studying the financial, tax, legal and other issues after approval.
It’s time for Jiahe to get a loan this time!
The last time Tianhe acquired Dow Brazil, it paid US$1 billion in cash, which blinded Avic.
Think of investment banks as waiters, right?
In fact, investment banks are the core team in M&A, playing the strategic, analytical, and organizational roles of the entire M&A.
Cross-border mergers and acquisitions require investment banks.
But in addition to service fees, arranging financing for enterprises is also an important part of making profits.
But Tianhe had a criminal record, which made Kerston a little worried. When the meeting was about to end, he looked at Guo Yang, who had not spoken.
"Mr. Guo, does this merger and acquisition of Jiahe require financing and loans?"
Guo Yang listened carefully to the entire meeting. While he was still digesting what he had just learned, he suddenly heard Kerston's question.
At this time, joyful laughter also sounded in the conference room.
Guo Yang waved his hand and said with a wry smile: "Keston, we haven't bid yet!"
(End of chapter)