Transnational Mergers And Acquisitions Are Too Early

Although we have always said that heroes do not ask where they come from, they are

Recently, "China

Acquisition of smoke bombs

In mid July, the Economic Observer reported the news of the takeover in mainland China on the acquisition of Prada? "Prada knows that after the boss is Chinese, he quickly changes his face.

The stock remaining 100 million euros was instantly raised to 250 million, "do you want it?" the negotiations were in an awkward position.

After the news appeared, Lu Qiang, the boss behind the scenes, became a popular search term on the Internet.

It is understood that Lu Qiang is president of Shanghai Fu guest industrial limited company.

In fact, as early as March and April of this year, some media in China first took the lead in giving voice, and the desire of Lu Qiang, a private enterprise to buy Prada, began to appear in newspapers.

As early as March 2nd, the "daily economic news" was exclusively informed that Shanghai Fu's Industrial Co., Ltd. is expected to go public in Hongkong at the end of the year. The acquisition of Prada has entered their schedule.

According to relevant media reports, Lu Qiang had already invested 20 million euros in acquiring a business consulting company in Italy before the negotiations, and secretly bought over 13 shares of Prada company.

Until they wrote, the acquisition continued.

Lu Qiang said: "if the next week can not smoothly buy 10%, I can not achieve holding, I will immediately sell the current holdings."

The news was released in China, and the Prada, which is based in Italy, reacted quickly. Then it made an official statement: in view of the recent news of Chinese media that Lu Qiang has purchased 13 shares of Prada group in the past two years, Prada group hereby solemnly declares that the Department has no basis of false reports.

The Prada group shares of the company are owned by the Prada family and the husband of Miuccia Prada, Patrizio Bertelli. Another 5. 11 shares are owned by Banca Intesa SanPaolo bank.

As a result, the whole thing became confusing, and some people dubbed it the "13 stake in Luo Sheng gate" in the fashion circle.

The authenticity of the news began to be doubtful. In order to understand the truth of the matter, in July 13th, reporters repeatedly telephoned Shanghai Fu's Industrial Co., Ltd., and the final reply was that the head of the company refused to be interviewed.

With regard to the whole story of the acquisition, why is there so much difference in the confession between the seller and the buyer?

Professor Sun, an economics school of Nankai University, explains: "here is an information asymmetry in the acquisition process under the market mechanism.

As a buyer and seller in a takeover paction, both parties want to show that they have the initiative, that is, they do not want to be understood by the other side, and the final mentality bears the base price.

It is evident that the two sides have not yet reached an agreement. The possibility of successful takeover is relatively small. "

Mentioned earlier, Lu Qiang originally wishful thinking is to borrow a commercial consulting company in Italy as a springboard for takeover.

Is it illegal to find the third party instead of the acquisition?

In this regard, Professor Sun said: "from an economic point of view, this practice is a strategic tactic used by the industry to avoid anti takeover, and generally the acquirers do not want to be identified by Zhi Xiao."

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Mergers and acquisitions come one after another.

In fact, the acquisition of Prada is not a solitary case, and domestic private enterprises are already becoming familiar with foreign brands.

Influenced by the financial crisis of the previous year, some fashionable brands abroad are showing signs of weakness. Chinese enterprises that have been coveted overseas markets have stepped up their pace and have thrown olive branches to foreign enterprises.

Last year, Pierre Cardin's "merger and acquisition" incident was fired up. At the beginning, all signs showed that Pierre Cardin would fall into the hands of Wenzhou's private enterprises represented by Cardanro. Who knows the strange situation that happened halfway, and Shanghai took the road halfway to win the bid.

Later, according to the analysis of the relevant personage, due to the defects of the original agent system in China, the final result of the acquisition is likely to be the overlap of the authorized scope of both sides: the Chinese clothing in Shanghai will have the ownership of the trademark and Chinese character trademark of Pierre Cartan's Latin alphabet in the Greater China region, while Cardanro is permanently accepting the operation and management rights of some products in Pierre Cardin China.

Several of them were happy and worried, and there was a decline on the part of Fu Yishi Lu Qiang. The Shandong Ruyi science and Technology Group Co., Ltd., however, was very successful recently, and succeeded in bringing the Japanese garment operators Renown into the arms.

It is reported that after the completion of the paction, Ruyi group will hold a stake of Renown company's shares of one hundred and fifty one to become the largest shareholder of the company.

Renown company, once the largest clothing brand operator in Japan, operates more than 30 famous clothing brands in Japan and Europe, and more than 2000 clothing stores in Japan.

In addition, many takeovers have begun to emerge.

Lin Congying, chairman of the nine Mu Wang (China) Co., Ltd. disclosed that before November this year, the company will cooperate with three European brands, including the acquisition of a high-end male trousers brand in Italy, and holding a German male trousers brand and a well-known clothing brand.

Gao Dekang, chairman of Bosideng group, said that the group is implementing the strategy of four seasons and striving for the acquisition of French and Italy clothing brands, French women's clothing brands and children's clothing business in the year to expand the brand portfolio.

It is not difficult to see that under the new economic situation, many Chinese garment enterprises are expanding their overseas road.

The acquisition of brands is like a "chicken egg" for these enterprises, which greatly reduces the time cost of the original brand. In the view of some Chinese businessmen, the acquisition is indeed a shortcut.

But in combination with the specific position of China's fashion industry in the world structure, this way also exposes many uncertainties.

Seize the fashionable heights too early?

Why did Pierre Cardin and Renown buy so smoothly, but Lu Qiang was rejected by Prada?

On this issue, the reporter interviewed Li Hanyu, general manager of Hisense Plaza in Tianjin. In the interview, he also mentioned this point: "the operation of a high-end brand like Prada can not only solve the problem of capital trading level.

A successful luxury brand must first have its own independent design team; second, a brand culture with a high degree of recognition; third, it will take a long time to accumulate history.

Why did Lu Qiang start the idea of buying Prada? Because in his view, China will one day become the world's largest luxury market.

More importantly, he believes that the potential of Prada in China has not yet been fully excavated, and there is still much room for it.

In an interview, he said: "if we do it, we can make it better in China."

Even after the takeover strategy, he has been thinking about changing the Prada strategy in the Asian market and introducing some more fashionable and cheaper lines to allow more and more Asia Pacific consumers to accept.

However, imagine that if Prada is reformed like this, will it still be the Prada now? This is the most likely reason for this acquisition to be blocked, and whether the development trend of China's existing garment industry can afford such a luxury brand.

Looking at the distribution map of luxury brands in the world today, France and Italy are firmly on the high side of fashion, but China still has no brand to enter the first tier of luxury brands.

Li said: "although we have always said that heroes do not ask for origin, they still have to ask where they are in the luxury industry. Any outstanding brand is based on the trust of consumers over the years.

Those who can make good luxuries are also those who pursue their quality in their bones, not just by immediate interests.

Despite the fact that the Prada incident has not yet come to an end, the speculation on developments is continuing. However, in any case, this embarrassing situation will at least let us know that there is still a long way to go for China's fashion industry.