China's LED industry is now overseas acquisitions tide

Integration is power, and mergers and acquisitions is undoubtedly an effective way to integrate resources. In today's economic globalization, cross-border mergers and acquisitions of enterprises is an important way to achieve the rapid accumulation of capital, resources, market expansion. In the eve of the advent of the era of LED lighting, through mergers and acquisitions to seize the way to enlarge the LED lighting market, which has become the consensus of the lighting industry.

international environment

Transnational mergers and acquisitions ushered in the best time

China enterprises involved in cross-border mergers and acquisitions is just the last twenty years, from 1992 to 2000, the first foreign investment peak, since 2000 China's accession to WTO, Chinese foreign investment enterprises began the second wave peak. The first stage is tentative, the scale of mergers and acquisitions is not large. The second m peak stage repeatedly, China enterprises realized only in the world economic system to have a stronger ability to survive. Our first go out of business to Lenovo, TCL as the representative of the consumer electronics and household electrical appliance enterprises, followed by the automotive industry and the financial industry launched a series of mergers and acquisitions in 2006 and 2007, in the market eye-catching. At the same time, oil, minerals and other resources enterprises, has become an international M & a market in china. But in the new round of mergers and acquisitions boom, the scope of China's M & a object has been greatly expanded, more open vision. Construction machinery, automobiles, consumer goods, and even the field of luxury goods, are constantly coming news of Chinese mergers and acquisitions. From the beginning of 2010, China's lighting industry has gradually appeared in the list of overseas acquisitions. NVC, Yankon, Elec-Tech lighting and a few other brands enterprises embark on the journey of cross-border acquisitions.

2002, China's foreign investment in mergers and acquisitions of only $200 million, in 2003 reached $834 million, an increase of more than 4 times, a rapid upward trend. 2004, Lenovo's acquisition of IBM's personal business transaction amount is only $1 billion 750 million. According to the global consulting firm estimates that in 2004, China's overseas mergers and acquisitions amounted to $7 billion. According to the Ministry of Commerce statistics, in 2011 China's domestic investors were non-financial foreign direct investment in 3391 overseas enterprises in 132 countries and regions in the world, the cumulative direct investment of $60 billion 70 million, the acquisition of foreign investment amounted to $23 billion 428 million. Regardless of the size or quantity, Chinese enterprises overseas mergers and acquisitions are steadily growing.

In 2012, overseas investment enterprise Chinese rises again: in January 31st, Sany has invested heavily in mergers and acquisitions of German machinery giant Putzmeister company; in February 3rd, the national Power Grid Corp with 3 billion 200 million yuan acquisition of 25% stake in Portugal's state energy company......

Analysts believe that the current is the best time to China going out of business: first, the European debt crisis and the financial crisis in the United States to provide favorable conditions for the enterprises; second, the previous investment in Africa, Latin America and Asia and some other countries, also accumulated a lot of experience. So at this time, the success rate is relatively high, the lighting industry is also the same.

Industry background

Market weakness to promote mergers and acquisitions

In 2011, LED chip prices fell significantly, pile up in excess of requirement, and the application of the market has not really open, LED generally reduce corporate profits, the second half of the year, LED manufacturers failed when the news came, the market penetration continued weakness, not only is China's small and medium-sized LED lighting manufacturers, even foreign brands LED lighting also feel great pressure operation the.

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