Following last year's participation in 10% shares of South Korea's GM Daewoo by SAIC, Chinese companies have acquired overseas vehicle companies for the first time in nine months -- South Ssangyong’s equity acquisition warfare that took 9 months. With SAIC’s entry into the “Global 500†"The dust is set. Looking back at the process of China’s first overseas acquisition of automobiles, some things are thought-provoking. It is reported that SAIC’s final acquisition success was achieved at a much greater cost than the original. The reason is that another Chinese company, the Blue Star Association summer camp slogan, launched a new online bondage asset withdrawal competition and won. The grand prize! The Jiangnan Scenery invites the participation and competition of the first group of agents to complicate the situation. The Ssangyong Creditor Bank was originally prepared to sell 300 to 500 billion won worth of shares to SAIC, and Bluestar is ready to use 650 billion won (about 540 million U.S. dollars) or even higher to obtain it. In addition, Bluestar promised to invest 700 million U.S. dollars to improve Ssangyong’s production equipment and R&D areas by 2010. Why did such an international merger and acquisition case, which has a role in promoting the domestic automobile industry, create a situation in which brothers are in the same room and may raise the cost of acquisition, and may even lead to the unsuccessful acquisition? Jia Xinguang, chief analyst of China Automotive Industry Consulting Co., Ltd., also stated that the case of Ssangyong's acquisition involves the contradictions of the domestic auto industry, the contradictions of the foreign auto industry, the contradictions of the auto industry at home and abroad, and the contradiction between the enterprise and the government. First, while the auto industry's vertical management rights have been changing, the history of divisions between various ministries and departments that govern the automotive industry has also long been formed. According to common understanding, when a company wants to launch a new automobile vehicle project, especially when a cross-border acquisition is required, it is impossible to have no national competent authority. SAIC has always stressed that SAIC Motor Corporation is the only company approved by the National Development and Reform Commission to acquire South Korea Ssangyong Motor. It is clear that the central government encourages SAIC to hold licenses for this acquisition. However, Bluestar suddenly came out to announce the acquisition, and it almost gave up at the last minute before giving up, apparently with the permission of the relevant authorities. This means that SAIC and Bluestar all look for permission. As a result, the two state-owned enterprises in China competed, but since the competition has been approved by the government, it cannot be simply attributed to market behavior. The 2004 version of the automobile industry policy introduced last month is also unable to effectively solve the real problems faced by the rapid development of this auto industry. This is the embarrassment and helplessness of the Chinese auto industry. Second, local interests are placed above the national interest. Bluestar is a “vulnerable†enterprise in the domestic auto industry. Its visibility and industry influence are far from Shangqiu, and SAIC is carrying out the “Shangfangbaojian†acquisition of the National Development and Reform Commission. In order to win the acquisition, Bluestar did not hesitate to push the price high, causing trouble for another Chinese company. In terms of business principles, competition is understandable. However, this is an overseas acquisition and should be differentiated internally and externally in foreign-related economic negotiations. Any Chinese enterprise and individual must, without exception, give priority to the country’s fundamental interests. Do not forget that you are a Chinese person. You must not disintegrate each other for the partial interests of small groups. As a result, there will be a situation where you will "combat each other, fishermen will benefit," and you will ultimately damage the country's overall interests. Of course, Bluestar finally gave up the acquisition, which also showed that the final differences were unified. Although this unified opinion has achieved satisfactory results, it has been a little late and the price paid is too high. However, the thinking it leaves to people is indeed thought-provoking. (Wenyan)
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