LED industry bid farewell to the wave of mergers and acquisitions to meet the melee

Before the circle of people to meet each other to ask 'earned no', and now ah, we have asked 'turn no'. "One of the CEOs of LED companies said humorously.

Most entrepreneurs believe that after two years of rapid development, the LED industry is about to bid farewell to the melee, mergers and acquisitions will be the best way for enterprises in the fierce competition in the market.

The company manager believes that the current LED industry mergers and acquisitions of listed companies is in full swing, not only the opportunity, the opportunity is non-listed company. Although the hand over the ownership of the firm, but the acquirer's shareholders receive the acquirer through the resale of shares of listed shares, equal to the enterprise indirect listing, and in most cases, the original shareholders will not lose control.

However, listed companies in mergers and acquisitions activity is clearly more advantageous. The photoelectric September 26th announcement, with "stock + cash" means the acquisition of Shenzhen yishida electronic Limited by Share Ltd. Yishida the main business for the LED display, previously planning IPO, the company's profitability is not less than their peers.

In the upper reaches of the industrial chain, LED chip to benefit from the rapid development of the terminal LED lighting market, the first half of this year, the LED chip market is still popular. In the middle reaches of the industrial chain, the domestic LED packaging enterprises in the technical aspects have little difference, the difference is only the size of the production capacity of enterprises. Some enterprises through mergers and acquisitions, integration of other small business resources, in order to achieve the purpose of expanding production capacity. Gong Wen, general manager of crystal Taiwan believes that the future packaging business competition will be the decisive factor in the management, cost control, as well as the size and brand.

In the lower reaches of the industrial chain, LED lighting market in 2014 as a whole to the good, but by the phenomenon of product homogeneity, lighting products are often limited to the price level. Through the integration of upstream and downstream enterprises, some enterprises develop competitive strategies for business trip. For example, complete the integration and shares the same side of the Hongkong listed Zhen Mingli day before, in the opinion of the deputy general manager Zhen Mingli Jiang Guangjun "from the center of the country, the development of industry last year, LED lighting products from simple price competition, turn to the value of competitive products. "He said, intelligent buildings this year launched Home Furnishing / Neoneon lighting solutions, this is a big trend before the wisdom of the city and make action to adapt to the market development.

Of course, M & A integration is not a panacea. The industry believes that mergers and acquisitions is not only the integration of the capital market, it should be the integration of corporate culture. If the two sides failed to reach the goal of unity, integration may bring negative effects, like between de Ho Runda and NVC will face the situation.

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