Category: Money Tips Date: 2007-03-04
Network circulating a cartoon: an enormous crocodile is being swallowed an elephant.
Gome's Natiao crocodile, elephant, needless to say, is Yongle.
July 25, China's electric chain industry's largest mergers and acquisitions settled. Gome and China Paradise held a joint press conference to announce their merger.
Than before, many people feel that the day of Chen deliberately maintained a low profile.
Chen, chairman of China Paradise, in the appliance and open circle nicknamed the "Iron abacus."
And national pre-merger America, if you say Paradise is a home appliance chains third child, he would immediately ask: "How can we say?"
Although more than Gome and Suning listed a year later, and the performance is tepid. In 2005, Chen had confidently said: "Who says there is no power of long hair certainly win!"
Times have changed things have changed.
July 28, in Shanghai, Chen received a telephone interview with this reporter. Could see, he is still cautious, but very willing to clarify some rumors.
Gome Chairman Wong Kwong Yu want to invite Chen as the new CEO of the combined company. For new positions, Chen said: "Now I have no way of answering. Because it is still a two listed companies, all going to share delivery is completed, I could make a decision."
The merger agreement does not exist on the bet
"21st Century": You have initial and GOME how contacts? Yongle suspension from 17 to 25, and the National US-formal merger agreement, during which twists and turns, change in the situation, and why?
Chen: We GOME about contacts in February of this year, when we just sit together and discuss the future development of the industry. In fact, in our combined price of the report submitted to the Stock Exchange has set the talk. Time is about 17 suspended at the time of Yongle. Such large-scale consolidation has been adopted by our board of directors and shareholders. Change is due to the SEHK and the SFC's procedures for handling the needs of a process, not as much media speculation.
"21st Century": After the merger, the new group holds 2.4% stake in Morgan, which is what this merger has played a role? Some people think that this merger is because the Yongle and Morgan on an exchange agreement.
Chen: National-US Yongle merger event, Morgan played the role of minority shareholders in general. Morgan expressed the need for the attitude of the board of directors, its attitude and the other board members are the same. The merger event there is no agreement on the gambling argument.
"21st Century": There are a lot of people think that dispersed ownership structure of the Paradise in the decision-making in the merger had a significant impact, resulting in twists and turns?
Chen: I think that did not bring any impact. We hope that the future will be more decentralized, which will help the company's major shareholders and small shareholders the balance of interests. The future of the company ownership structure must be better distributed, which is corporate governance issues.
Staff does not know who their shareholders to worry about
"21st Century": disclose the merging parties to effectively integrate the program? Where is the difficulty of integration? In particular, how to implement the "dual brand" strategy?
Chen: In the two equity transactions were not terminated, the inconvenience to disclose the details of integration. Approximately the end of the year in order to bear fruit. I do not think there is difficulty in integration. This merger is a merger of the capital market is not the integration of brands and stores. This time we take a dual-brand strategy, because the same market, two electrical retailing group, which has a very strong brand appeal and personality. Which is not a question of reservations, but where the regional development problem of these two brands.
By pairs of brand development, and to get more market share. The two brands combined to enlarge the overall scale, more bargaining power, you can share some resources, price competitiveness will be stronger, it is the changes brought about after the merger. The two brands will continue to expand in different areas, of course, before the merger of suppliers we have signed contracts and employee contracts still valid.
"21st Century": It is said that the joint announcement of the country shortly after the US-Wing-lok, online spread the "medium and large with the Wing-lok, to re-break to find a buyer" message. I do not know whether this is true? The future progress? Gome, Yongle the merger scene that also expressed the hope that more partners to enter Does it include Suning?
Chen: We have the cooperation of large and medium still normal, you can also ask Dazhong. We do not know from where the news online. I think about the future a greater degree of cooperation should be that any person has Probably.
"21st Century": if the Hong Kong Stock Exchange delisting approval of Yongle, which will Yongle of the managers and staff what kind of impact?
Chen: I think not going to care about employees and shareholders of the company is. And Wing-lok's stock is also a stock, Gome's shares are shares, the stock symbol what is not important. The key is that this stock will not be amplified or value-added is the most important.
Is not that we in the market price of about
"21st Century": the country industry is worried that the merger will bring beauty and Wing-lok, trade monopolies, to generate greater pressure on the upstream suppliers.
Chen: We consider it impossible to create a monopoly. Chain did not meet the size of the domestic monopoly level, nor was it about our market prices. We hope that this merger will change the traditional business model, from a brand-oriented supplier to the consumer-oriented new business model.
Over the years, the supply of retail outlets in the main business of doing the work of the brand-oriented, but not the same as their foreign counterparts to customer-oriented as the primary target. This brand-oriented brands produced by the supplier is also among the competition.
We are in the country in April this year, the United States had called for a summit on the current competition in the manufacturing sector, the lack of core technology, competitiveness and innovation capability, more to be identical and homogeneous products. Therefore, the manufacturing sector competition into the market, can go deep into the retail end. Hope that we combined for suppliers to be able to bring about greater development space, so that we will have more room.
I do not feel the existence of Best Buy
"21st Century": the industry think that this contributed to the country of beauty and Yongle for the purpose of the merger with Best Buy to compete. This year in May, Best Buy to buy 180 million U.S. dollars in domestic fourth-largest home appliance retailer Five Star Appliance.
Chen: What you see in China, Best Buy's stores or its competitive edge it? We do not think Best Buy on our pressure, we have seen is that it even had its own expansion Gubuguolai. We simply do not feel that Best Buy where what look like. We do not think Best Buy necessarily suitable for the Chinese market, because of China's national conditions and different foreign countries.
We have other competitors combined and formats, and we hope that the new company can have a greater market share, we will not give chance to others. Our biggest competitor is ourselves, how to transcend their own is the most important. In the short term, and there is no competitor.
