LED lighting cross-border mergers and acquisitions will welcome the opportunity

Integration is power, and mergers and acquisitions are undoubtedly an effective way to integrate resources. In today's economization, cross-border mergers and acquisitions of enterprises are an important way to rapidly realize capital accumulation, resource possession and market expansion. On the eve of the advent of the LED lighting era, it has become the consensus of people in the lighting industry to seize the expanding LED lighting market through mergers and acquisitions. After the outbreak of the European debt crisis, European countries generally welcomed Chinese companies to invest, which provided Chinese lighting companies with excellent opportunities for overseas mergers and acquisitions. Based on this, in 2011, the wave of mergers and acquisitions of LED lighting enterprises in China surged, causing a whirlwind of LED mergers and acquisitions. Entering the 2012 s, the momentum of mergers and acquisitions has become more intense, and many of the acquisitions are targeted at enterprises. The wave of mergers and acquisitions by Chinese lighting enterprises will undoubtedly affect the pattern of China's lighting industry and even the entire world's lighting industry. But at the same time, it is also necessary to remind Chinese lighting companies to have a purpose and pertinence when investing overseas or acquiring foreign-funded enterprises. International Environment: cross-border mergers and acquisitions welcome a good opportunity. It is only nearly 20 years for Chinese enterprises to participate in cross-border mergers and acquisitions. 1992 ~ In 2000, there was a peak of foreign investment. Since China's accession to the WTO in 2000, Chinese enterprises' foreign investment began its second peak. The stage is mainly tentative, and the scale of mergers and acquisitions is not large. The second stage of mergers and acquisitions peaks, Chinese companies realized that only by integrating into the world economic system can they have stronger viability. The first enterprises to go out in our country are consumer electronics and home appliance enterprises represented by Lenovo and TCL. Following closely, the automobile industry and the financial industry launched a series of mergers and acquisitions in 2006 and 2007, attracting attention in the market. At the same time, oil, minerals and other resource companies have also become a Chinese force in the international M & A market. However, in the new round of mergers and acquisitions, the scope of Chinese companies' mergers and acquisitions has been greatly expanded, and the vision has become more open. In the fields of construction machinery, automobiles, consumer goods and even luxury goods, news of mergers and acquisitions of Chinese enterprises has been constantly heard. 2002 our country Enterprise to M & A style foreign investment only 0. 2 billion beauty yuan 2003 to 8. 3. 4 billion US dollars, an increase of more than four times, showing a rapid upward trend. In 2004, only Lenovo acquired IBM's personal business, a transaction amount of 17. $0. 5 billion. According to estimates by Lasham Consulting, the amount of overseas mergers and acquisitions by Chinese enterprises reached 7 billion US dollars in 2004. According to statistics from the Ministry of Commerce, in 2011, domestic investors in China made non-financial foreign direct investments in 132 overseas enterprises in 3391 countries and regions, with a total direct investment of 600. US $0. 7 billion, of which 234 was invested in foreign acquisitions. $2. 8 billion. In terms of scale and quantity, overseas mergers and acquisitions by Chinese companies have grown steadily. In the 2012 s, the overseas investment of Chinese enterprises reached another climax: in January 31, Sany Heavy Industry invested heavily in the acquisition of German machinery giant Putzmeister company; On February 3, State Grid Corporation purchased 25 shares of Portugal's national energy network company with 3. 2 billion yuan. Analysts believe that this is a good time for Chinese enterprises to go out :, the European debt crisis and the financial crisis in the United States have provided favorable objective conditions for enterprises to go global; Second, in the past, a lot of experience has been accumulated in the investment process in some countries such as Africa, Latin America and Asia. Therefore, at this time, the success rate of enterprises going out is relatively high, and the same is true for the lighting industry. Industry Background: weak market promotes mergers and acquisitions and upgrades in 2011, the supply of LED chips exceeded demand and the price dropped significantly. However, the application market has not really opened up and the profits of LED enterprises have generally decreased. In the second half of the year, the news of the collapse of LED manufacturers has come out from time to time, and the market penetration is still weak. Not only small and medium-sized LED lighting manufacturers in China, but also foreign LED lighting brand manufacturers also feel the huge pressure of operation. In the first half of 2012, there will be more news that LED manufacturers will withdraw from the market one after another, and industrial integration is inevitable. However, in the LED industry, the upstream core technology is still controlled by foreign companies. Under the circumstance that core technology and huge profits are controlled by foreign enterprises, the development of Chinese LED enterprises is treading on thin ice. The current industrial situation such as small scale and non-centralized distribution limits the development of enterprises, make Chinese LED enterprises leaderless. Fortunately, the upcoming LED lighting era has also prompted upstream and downstream enterprises to join forces to grab the market. In order to expand the competitive market area and enhance the core competitiveness, enterprises with capital advantages begin to actively seek resource integration, trying to integrate industry resources through mergers and acquisitions, and expand product lines in different fields through acquisitions, to consolidate and enhance market position.