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Weichai master "bargain-hunting" in Europe wish to buy German Deutz

Home / News & Events / Details ...
2011/12/27

Excellent use of the debt crisis of the time, Weichai Group head Tan Xuguang hunters "Europe" drama had begun, and last week announced a "Weichai Power" as the acquisition of the Italian parent company of Shandong Heavy manufacturers Faraday luxury cruise Group (Fer-retti), Tan Xuguang bargain-hunting in Europe only a warm-up a comprehensive plan.

Weichai level close to source has disclosed to reporters, Weifang has been targeting overseas acquisitions next World Engine "originator" with 140 years of history of the German Deutz AG (referred to as: DEUTZAG).

    If the acquisition of Deutz, Tan Xuguang charge of Weifang Diesel will break the one hundred billion from the sale, the dream world one step closer to 500. It seems people in the analysis, more importantly, the acquisition of a joint venture relationship with Weifang Deutz, Weichai will fully enter the global power market, the next step to pave the way.

● "Tan bold" appetite

    "Temporarily not heard this information, so we are unable to respond to such messages." Asked whether the group level Weichai interested in acquiring Deutz, the Heavy Industries Weifang Shandong Party Committee Propaganda Department of the Holding Group a responsible person circumspect, and refused to comment on these messages.

    In secretly, because often decisive attack in the capital market is regarded as "Tan bold" Tan Xuguang intensive advance their own bargain-hunting in the entire European project.

    From 2009, Weifang Diesel snapped a century-old French Baudouin engine company, to foreign media last week broke the actual control Shandong Weifang Diesel will be € 220 million acquisition of Heavy Industries Europe's largest luxury yacht manufacturing company in Italy Faraday Group, Tan Xuguang appetite seems insatiable. Close to high-level insider Weichai had broke the news to reporters two months ago, Weichai will acquire a leading independent European engine company, but the real goal Tan Xuguang until recently surfaced, and that is according to the German Road Mainz. "Deutz dispersed ownership structure, only the largest but also the controlling shareholder holds more than 30% equity and market value as of the end of 2010 only 10 billion euros to acquire shares will advance Weichai Deutz." Insider last week told reporters, Weifang Deutz plans to win more than 20% of the shares.

    From the international point of view, Mercedes-Benz (BENZ), Volvo (VOLVO), Man (MAN), IVECO (IVECO), Renault (RENAULT) and other commercial giants have their own matching engine production plant in Europe existing commercial vehicles only a handful of independent engine supplier, only two Perkins and Deutz.

    As the engine of today's oldest independent manufacturers, according to Citi for Road range from 25KW to 520KW power water-cooled and air-cooled engine, can be widely used in engineering machinery, generators, agricultural machinery, commercial vehicles, railway locomotives and ships, product serial greater complementarity with Weichai.

It is understood that Tan Xuguang most likely will be the name of the parent company of Shandong Heavy Deutz complete the acquisition. "Taking into account cross-border acquisitions of listed companies may cause stock transaction, and the need to go through the complex process to the Commission for approval, the acquisition of Deutz Faraday mode is likely to replicate."

     Informed sources, the acquisition will start in the first half of next year to start. In addition, as early as Deutz and Weifang in 1998 formed a "Weifang Weifang Deutz Diesel Engine Co., Ltd" company, should the successful acquisition of Deutz, the next step for the integration of Weifang "Weichai Deutz" meaning a major.

● improve the layout of the vehicle

     According to the reporter, in Tan Xuguang integration "Weichai Deutz" behind the vehicle is fully enter the field of brewing Weichai more ambitious plans. "From 2012, Tan Xuguang sounded Weichai will fully enter the field of vehicle horn." Informed sources disclosed last week, cross-border acquisition of Weifang Deutz help advance the field of vehicle.

     September 14, Weichai sudden announcement that the actual controller Shandong Heavy commitment to avoid its joint venture with Weifang Diesel Deutz Weichai intra-industry competition between, the two will be implemented within three years of reorganization and integration between.

     "Integration Weichai Deutz, in fact, for the early acquisition of Weifang Yaxing, enter the vehicle cleared the field of policy barriers." Market analysts have pointed out that once the acquisition of Weifang Deutz means Wei diesel power may be a matter of course on the completed integration of Weifang Deutz work.

     According to Yangzhou Yaxing Inc. (Yaxing, 600,213) announcement in March this year, disclosed, Weifang Group, a subsidiary Weichai (Yangzhou) Yaxing Automobile Co., Ltd., its controlling shareholder intends Automobile Group Co., Ltd. Jiangsu Yaxing Yaxing acquired its holdings of 112 million shares (representing 51% of the total share capital), the Commission in assessing the acquisition, the Group of Weifang business competition with the proposed requirements.

Three years ago, when the media asked whether they intend to enter the vehicle and the Weifang area, the answer is still given by Tan Xuguang: "In China's current stage of the vehicle, the average gross profit margin is 8%, while our production engines the average gross profit margin and transmission is 25% -30%. to do business is to make money, I do not do superficial. "

     However, the development of the situation must change our thinking so that Tan Xuguang. Shaanxi Heavy Duty Truck with Cummins hand, Beijing Foton Daimler joint venture success, and met with China's heavy truck Volvo and German Manda into cooperation, more companies are walking in a separate vehicle search engine provider, get rid of the Wei firewood and other independent suppliers "constraints" on the road.

     Prior to the acquisition of Yaxing, Weifang once ten thousand yuan 416 million capital increase Shaanxi Heavy Duty Truck, Shaanxi Auto sought to enter the vehicle holding area, but was seeking to check the overall listing of Shaanxi Auto. Subsequently, Weichai brewing joint venture with the German Man-made vehicle plans disrupted by China National Heavy Duty Truck, Man the final stake in China's heavy truck and become the second largest shareholder.

     The reporter has learned, in addition to the layout of Yangzhou Yaxing projects, the Chongqing municipal government in the "matchmaking", the Yangtze River through the acquisition of Weifang cars in Chongqing to implement a total investment of 800 million Weichai vehicle project. It is reported that Weichai vehicle early in the project design for the 5000 production is expected to add production value of 3.0 billion, plus the matching system will create a 30 billion of the commercial vehicle industry chain.

     A senior analyst told reporters, Tan Xuguang acquisition of German Deutz real intention is that by improving the layout of the vehicle industry, to enter the global power market, with both hands ready to deal with "self-built engine company vehicle," the change. "Deutz is the world's engine brand in the world have a ready-made distribution network, will help the latter once the White Weichai great strides towards international.


News from ET Power Machinery Co.,Ltd
Edited by Siren

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