Military industry will become a new hot spot for foreign capital beheading mergers and acquisitions
Introduction: for those overseas industrial capital or investment funds that target China's manufacturing equipment industry, with the change of China's overall policy. In 2007, China's M & a market will become their new adventure paradise. The Commission of science, technology and industry for national defense should adjust the color difference in time. The "two opinions" issued this time only
for those overseas industrial capital or investment funds that target China's manufacturing equipment industry, with the change of China's overall policy. The Chinese M & a market in 2007 will become their new adventure paradise
the "two opinions" issued by the Commission of science, technology and industry for national defense this time only leaves a small gap for foreign capital to enter the military industry: "for foreign capital to enter the field of National Defense Science, technology and industry, in addition to implementing the relevant provisions of this opinion, it should also comply with the national regulations on national defense security, technical confidentiality, national attributes and so on."
coincidentally, the financial times learned that the upcoming 2007 edition of the foreign investment guidance catalogue has entered the final revision stage. The catalogue will be further tightened in terms of specific industrial investment guidance. The tightening industries are those involving the lifeline of the national economy, including national defense and military industry, petroleum and petrochemical, major manufacturing and other industries
it is generally believed that military related fields include key equipment manufacturing, communication optical fiber, shipbuilding, aviation and other important aspects. There is no doubt that this is a lucrative market, so it has become the favored object of foreign and private capital. In 2006, it was precisely because the key industries of military industry encountered mergers and acquisitions that Chinese people worried about foreign monopoly mergers and acquisitions
the mergers and acquisitions of XCMG and Luozhou axis, which attracted much attention in 2006, exposed the "ambition" of international giants. XCMG is the largest manufacturing enterprise in China's construction machinery industry, while Luozhou shaft group is the largest comprehensive bearing manufacturer in China. According to the acquisition plan, Carlyle plans to acquire 85% equity of XCMG for us $255million. At the same time, Schaeffler, Germany, the second largest bearing manufacturer, also reached a framework agreement with Luozhou axis group in the holding mode
people worry that the reason why multinational giants like Schaeffler take a fancy to Luozhou group is to form a monopoly on the Chinese market. The further threat of this monopoly is that China will play the role of migrant workers in the overall pattern of international industrial division of labor. Similarly, this will also threaten the survival of China's national industrial independent brands
for a while, the word "beheading mergers and acquisitions" has become the best expression of such acquisitions in China. Domestic industry insiders found that foreign capital has gone so far in the domestic equipment manufacturing, a key military related field
in fact, relevant management departments are also aware of this. The State Council issued the document "several opinions on accelerating the revitalization of the equipment manufacturing industry" in June 2006. According to the spirit of this document, the entry of foreign capital into the domestic equipment manufacturing industry must help cultivate national brands, rather than transforming local equipment manufacturing enterprises into manufacturing bases for foreign brands
policy lags behind
compared with capital with a keen sense of smell, the arrival of policy seems to be late. In fact, in the previous two years, in the open capital market, foreign capital has carried out extensive mergers and acquisitions in the field of military themes. In the upsurge of military themes in 2006, foreign capital mergers and acquisitions are also an important supporting force for the popularity of military stocks
in 2006, Lianchuang Optoelectronics (600363) rose to prominence in the capital market due to the military theme of foreign mergers and acquisitions. According to the announcement, Jiangxi Lianchuang Electronics Co., Ltd. was jointly established by Jiangxi Electronics Group, the company's largest shareholder, and EF International Investment Co., Ltd
after the establishment of Lianchuang electronics, it will also acquire 29.8% equity of Jiangxi Lianchuang Optoelectronic Technology Co., Ltd. held by the group company. It should be noted that Jiangxi Lianchuang communication company is a well-known communication enterprise restructured from a state-owned military enterprise, which provides relevant command, scheduling, exchange and transmission communication equipment for the Chinese people's Liberation Army and public security. At this time, EF International Investment Co., Ltd. will gain a market with a gross profit of at least 40%
the same thing happened to Wuhan boiler (200770). Wuhan Boiler Group has built a key group of Southeast Asia Airlines with Meilan and Phoenix airports as the main body, which has been engaged in industrial boiler business for a long time, and has provided steam generators for various types of nuclear submarines. However, such an important military enterprise transferred 51% of its equity to ALSTOM group in April 2006 (the merger is still pending approval)
open the list of the main military equipment industry in the military industry, and you can find a long list of industry-leading enterprises controlled by foreign capital: Wuxi Weifu, the largest manufacturer of diesel fuel injection system in China, Jiamusi combine harvester factory, the only manufacturer of large combine harvesters, Dalian electric machinery factory, the largest motor manufacturer Harbin first tool factory, the largest manufacturer of precision tools...
foreign capital turns to
this time, the Commission of science, technology and industry for National Defense announced that it would allow the non industrial economy to enter the non restricted military industry, but it did not block the way for foreign capital to enter military enterprises. Although foreign capital is guaranteed to enter, it is bound to be subject to relevant restrictions. Beheading mergers and acquisitions such as XCMG mergers and acquisitions and Luozhou axis mergers and acquisitions aimed at the national industry pacesetters will be difficult to staged again. In fact, it will be difficult for foreign capital to obtain a controlling position in some enterprises that occupy an important position in the domestic market
even so, in terms of foreign investment, the military industry is still a lucrative cake, which is enough to excite foreign investors. It can be predicted that in the next few years, whether in the open capital market or in the industry, foreign investment in the military industry will become a hot spot
tiandongyu, an analyst of Tianxiang investment industry, told the Financial Times: "military products are different from general civilian products. They have the characteristics of military civilian integration, product technology including China's continuous innovation in the field of advanced extrusion technology and high gross profit. In the future, it is worth paying attention to how foreign capital will enter the military industry."