![<?echo $_SERVER['SERVER_NAME'];?>](/template/twentyseventeen/skin/images/header.jpg)
If the transaction is successful, this will become the second international tire acquisition after China's chemical purchase Pirelli Italy. It is understood that the subject of this acquisition is the Qingdao Shuangxing Group's M&A fund. When exiting the investment project, Qingshuangxing will have the right of preferential transfer under the same conditions. Therefore, it is not ruled out that assets may be injected into listed companies after the successful acquisition.
Qingdao Double Star Chengjin Lake Tire Final Buyer
Non-price advantage stands out
Qingdao Shuangxing stated that it has received notice of entering formal delivery procedures and both parties have followed the international norms and the previously agreed SPA agreement.
Qingdao Double Star’s previous announcement showed that the main entity of the acquisition was Qingdao Star’s equity fund, Qingdao Star Micro Investment Industry Fund. The fund was registered on December 29, 2016. The total planned investment is no more than 10 billion yuan, of which, Qingdao Double Star as a general-level LP plans to contribute 900 million yuan. The proposed 42.01% share price will be approximately 954.981 billion won, or approximately 5.7 billion yuan.
It is understood that Kumho Tire has a history of 57 years and is the second-largest tire company in Korea. It has five R&D centers in Korea, China, the United States, and Europe, and eight factories in South Korea, China, the United States, and Vietnam. .
As early as early 2016, the market rumors that Kumho Tire creditors such as Korea Industrial Bank will sell shares. On November 17, 2016, Kumho Tire listed five companies including Qingdao Double Star, Linglong Tire and Apollo India on the list of buyers. On November 26, 2016, Linglong Tire announced that, in view of the loss of the target company's operating results, the company finally decided to terminate participation in the acquisition of the project.
According to reports, only three companies from China, including Shanghai Aerospace Industry Corporation, Jiangsu Jinpu Group, and Qingdao Double Star, have bids for around 1 trillion won. The creditors eventually chose Double Star as their preferred partner.
The Kumho Tire creditors stated that although the final bid evaluation made price as the main factor, but also considered non-price factors, including future business plans and employees, management and other factors, creditors recognized Double Star's industry influence, integration ability, and the future. Planning comprehensive strength.
This means that creditors not only consider prices, but also fully consider the development and future of Kumho. This may be a key factor for the double star to be a priority partner.
High degree of product complementarity
According to reports, Kumho’s main advantage is in light truck tires, and its product performance and global reputation are relatively good. Kumho is also the only company in Korea that produces fighter tires. However, in terms of truck and car tires, its scale is gradually decreasing due to strategic adjustments.
The main advantage of double star is in the passenger car tires. DoubleStar is one of China's five major truck and passenger car tire manufacturers, especially in mine tires, medium and long-distance tires, short and medium-distance tires, urban bus tires, etc. It is also the only company in the world that produces professional fire-fighting tires. However, in terms of light truck tires, although the R&D and investment have been increased in recent years, and the goal of creating the first brand of passenger car safety tires has been proposed, its existing competitiveness and scale are obviously insufficient.
The industry generally believes that not only the experience of double star transformation and development can better help Kumho solve the current problems, but also can form the best synergy effect when the conflict of interests between the two parties is minimized.
Create a global high-end brand
Qingdao Shuangxing stated that it will take full advantage of the status, advantages and influence of Doublestar in the Chinese market after the acquisition of Kumho Tires, as well as experience in corporate transformation and smart manufacturing, as soon as possible to normalize the production and operation of Kumho China tires, and work hard. Put Kumho Tyre into a high-end brand in the Chinese market.
Qingdao Shuangxing said that for Kumho Tire's existing advantageous products, it will soon form a scale and push it to the market. At the same time, DoubleStar will give priority to the current depot customers and offline dealer resources to sell Kumho products. Twinstar can integrate Kumho Tire's raw material resources and further develop its partnership with suppliers, which not only can reduce procurement costs but also improve order response speed. In addition, Kumho's tire factory in South Korea will continue to fully meet the needs of South Korean customers, including Hyundai, Kia, General Motors and other major automotive plants and replacement markets. With regard to the insufficiency of the dual-star and Kumho markets in Europe and Central Africa, Double Star will also formulate relevant plans as soon as possible, and explore the establishment of a new manufacturing base based on the full utilization of existing manufacturing capabilities.
Qingdao Shuangxing also said that even with the control of Kumho Tire, it will maintain Kumho Tire's independent operations and actively promote the renewal of Kumho Tire's existing employees. At the same time, it will make use of the advantages of the respective products of the two parties and give play to the synergy effect. It will soon become one of the major competitors in the global tire market.
Tire industry sources stated that the acquisition of Kumho Tire by Twinstar is a normal business activity between Chinese and Korean companies, not only complying with international regulations but also opting for better timing. Double Star will use acquisitions to accelerate development and increase the status and influence of Chinese tires globally. Of course, we will also face issues such as differences in corporate culture and management and management of Kumho.
Three Layer Cat Cage,Square Tube Dog Cage,Square Bird Cage,Foldable Pet Cage
Dalian CS Logistics Technology Co., Ltd , https://www.dlcsems.com