In the past 2017, not only the well-known entertainment circle has been performing farce of separation and reunion, but there are also stories of reunion and separation in the automotive circle. This year, mergers and acquisitions in the auto parts industry occurred from time to time, most of which were successful, and many failed. Gasgoo recently summarized the mergers and acquisitions in the past year, and specially sorted out the mergers and acquisitions in this field that have ended regrettably and temporarily failed in 2017. Let's take a look!
​​
In January 2017, South Korea's Kumho Tire creditors officially confirmed that Double Star is the priority negotiating object for the transfer of Kumho Tire's creditor's rights. On March 13, Doublestar officially signed an agreement with the nine major banks in South Korea to acquire its 42.01% stake in Kumho Tire at a price of about 955 billion won. According to the transaction agreement, if Park Sam-gu, chairman of Kumho Asiana Group, does not exercise the preemptive right of repurchase within 30 days, Doublestar will become the largest shareholder of Kumho Tire. On April 25, Qingdao Shuangxing said that due to the preemptive rights holders Park Sanqiu and Park Shichang failing to exercise the preemptive rights before the expiration of the preemptive rights, Qingdao Shuangxing will become Kumho according to the agreement of the equity purchase agreement. The ultimate buyer of tires.
​​
However, things did not go so smoothly. When everyone thought that the merger and acquisition event had been settled, around June 2017, foreign media reported that despite the pressure from Kumho Tire’s many creditors to Kumho Asiana, However, the company insisted on increasing the royalty fee for the "Kumho" trademark, which was raised to 0.5% from 0.2% of Kumho Tire's 2016 sales. Qingdao Shuangxing, on the other hand, stated that it would not back down. The company insisted on the acquisition price of 955 billion won, and the copyright royalties of the "Kumho" trademark were included in the fee. So far, the merger has stalled.
​​
However, this deadlock did not last long. In September 2017, Qingdao Double Star officially announced that the company terminated the acquisition of Kumho Tire. Qingdao Shuangxing's acquisition of shares in South Korea's Kumho Tire has come to an end.
​​
On November 6, 2017, the semiconductor giant Broadcom announced an acquisition offer for Qualcomm, planning to spend $130 billion (including $25 billion in debt) to acquire the mobile communication chip giant in cash and stock at a price of $70 per share. Qualcomm. Before and after November 20, according to media reports, Qualcomm’s board of directors formally rejected Broadcom’s offer for a $105 billion acquisition, saying the offer “clearly underestimates” the company’s value.
​​
After this, Broadcom has not yet announced its next steps. However, according to the latest news from foreign media, Qualcomm's shareholders will vote on Broadcom's candidate or Qualcomm's candidate at the annual meeting on March 6, and Broadcom has begun to formally lobby Qualcomm's minority shareholders to try to overthrow Qualcomm's existing board of directors. Most industry insiders believe that Broadcom's offer is not enough to impress Qualcomm shareholders. But it also shows that if Broadcom raises the purchase price before the March shareholders meeting, it may shake shareholders.
​​
Around May 2017, Fengshen Tire announced that it planned to purchase 90% of the shares of PTG (Pirelli Industrial Tire) Company, 100% of the shares of Guilin Beili, and 10% of the shares of PTG Company held by the company itself, and the transaction was completed. Afterwards, Fengshen Tire will acquire 100% equity of Pirelli Industrial Tire.
​​
However, while the industry was still talking a lot about the impact of this acquisition on Aeolus, Aeolus Tire announced around January 2018 that its acquisition of PTG was terminated. As soon as the news was revealed, the car circle was naturally buzzing, and most of them didn't know why. According to the explanation given by Fengshen Tire, the reason for the termination of the acquisition is that as of December 31, 2017, the transaction has not been filed with the Ministry of Commerce and the National Development and Reform Commission for overseas investment, nor has it obtained the approval of the relevant government agencies required for the transaction. , inspection and filing.
​​
Such a general explanation obviously cannot satisfy the curiosity of people inside and outside the circle. However, the author noticed that Fengshen Tire mentioned in the relevant response that due to the high asset-liability ratio, the company's own funds were not enough to complete the acquisition of 90% of PTG's equity, and it would not consider injecting funds in the form of cash acquisitions in the future. This also makes people suspect that the lack of funds may be the main reason why the acquisition had to be terminated.
​​
It is worth mentioning that Aeolus Tire pointed out that, thanks to the commercial agreement, although the transaction was temporarily terminated from the perspective of asset injection, the business integration of the two companies continued. In addition, although the transaction was forced to be put on hold, when the subsequent relevant conditions are mature, ChemChina will again consider injecting the relevant industrial tire business and assets into Fengshen shares at an appropriate time.
​​
In November 2017, Michelin will no longer hold the equity of Pull Back Tire after the explosion. Some analysts said that Michelin had planned to further increase its stake in Anhui Huili, which led to a deadlock between the two parties, resulting in a "complete withdrawal" situation.
​​
According to public information, Shanghai Huayi Group Co., Ltd. stated that its parent company, Shanghai Huayi (Group) Company, plans to hold the entire equity of Double Coin Group (Anhui) Huili Tire Co., Ltd. Among them, Shuangqian Tire Group Co., Ltd. invested 107 million yuan to acquire a 10% stake in Huili Tire. The original holder of this part of the equity is Michelin (China) Investment Co., Ltd. At the same time, Shanghai Huayi Group (Hong Kong) Co., Ltd., a wholly-owned subsidiary of Shanghai Huayi (Group) Company, invested 320 million yuan to acquire a 30% stake in Huili Tire. This part of the equity originally belonged to the French Compagnie Financiѐre Michelin SCmA (CFM company).
​​
Therefore, after the transaction is completed, Shuangqian Tire Group, Shanghai Huayi (Group) Company and Shanghai Huayi Group (Hong Kong) hold 50.8%, 19.2% and 30% of the equity of Huili Tire respectively. Double Coin Tire Group remains the controlling shareholder of the company. CFM and Michelin (China) no longer hold equity interests in the above-mentioned companies. According to the data, Shuangqian Tire Group is a wholly-owned subsidiary of Shanghai Huayi Group. Michelin (China) is a wholly-owned subsidiary of CFM, both of which are owned by the French Michelin Group.
​​
The acquisition of Tianqi Model can be said to be "finished before it begins".
​​
On September 11, 2017, Tianqi Model suspended trading and planned to plan to acquire assets related matters. Relevant announcements show that Tianqi’s simulated acquisition target asset is the equity of an auto parts company, and its net profit in the latest fiscal year is more than 85 million yuan, which meets the deliberation standard of the shareholders meeting. However, only a week later, the acquisition fell through.
​​
Tianqi Mo said that during the suspension period, the company conducted in-depth demonstrations with the target asset side, but the two parties failed to reach an agreement on the important terms of the transaction. It is expected that it will be difficult to form a specific and feasible transaction plan in a relatively short period of time. Therefore, the company decided to terminate Planning for the acquisition of assets.
​​
It is understood that in the first half of 2017, the revenue and net profit of Tianqi Momo dropped, and Tianqi Momo's planning for this acquisition may be related to the company's performance in the first half of this year. Industry insiders said that although the acquisition was terminated, the possibility of continuing acquisitions in the future cannot be ruled out.