Heavy weight! GE lighting formally entered the auction program

GE lighting, which has been delayed for many years, has recently spread the news that is about to be sold.

GE lighting business is not the first day of the news, a few twists and turns, in the near future, it seems to see a glimmer of dawn. According to LEDinside, the sale of GE lighting is about to enter the bidding process. This transaction will have the opportunity to sell GE's general lighting business, the CURRENT system and the smart lighting package. Some financial institutions may assess the value of their assets at about $6~8 billion. Of course, the number of years and the coverage of the GE brand will still be required to determine the final value.

General situation of GE lighting business

Sources: LEDinside collation

Edison, the founder of GE, invented the light bulb more than 100 years ago, and the GE brand was almost equivalent to lighting in the past. However, the LED transformation was not successful in recent years, and the proportion of lighting business to GE group's revenue and profit was not high, so GE wanted to deal with the non core business such as lighting long ago. However, despite the rumours of the past sale, the sale has always stayed at the stage of the staircase. The main reason is the high valuation of the past lighting industry, and the GE internal attitude towards the sale of lighting. And under GE's former CEO Jeff Immelt (Jeff Immelt) clapper, GE has accelerated the way to sell lighting business.

In order to make it easier for buyers to take over their lighting business, after more than a year of reorganization and split in GE, there are only 6 factories left in the GE lighting factory. Some financial institutions may assess the value of their assets at about $6~8 billion. Of course, the number of years and the coverage of the GE brand will still be required to determine the final value.

As GE lighting still belongs to a strong channel brand in North America, it is expected to still attract many Chinese LED to compete with lighting manufacturers. According to LEDinside, potential buyers not only include lighting enterprises starting from the traditional lighting field, including flying music, Tong Shida, sunshine lighting and so on, and of course, the three an optoelectronic, wood, and so on from the LED lighting. And in the past, a lot of equity capital alligators in LED and lighting mergers, such as Jinsha River, did not want to be absent.

In the era of global lighting industry integration, the past few PHILPS, LEDVANCE have been fixed, the direction of the GE has become a few opportunities to change the global lighting industry layout. GE lighting will eventually fall to whose home? The mystery is bound to wait until the bidding can be announced, before this can only be simply evaluated, all the way Howe and male are so aware of the reasons for the GE lighting assets.

Traditional lighting manufacturer

Music Acoustics

Although it owns the famous lighting brand of Ya Ming in Shanghai, it is ultimately a local brand in China, so it always has a dream of a global brand. In 2015, after the acquisition of the brand of SYLVANIA in the hands of Havells Holding, flying music has officially stepped out of the overseas market from China. However, it is still limited to Europe and India. SYLVANIA North America's brands and channels were originally assigned to OSRAM before 1993. Therefore, if the music audio is able to take down the brand and access of GE lighting, it will fill the gap of its jigsaw puzzle.

Illuminate

From the traditional lighting generation time, we have mastered the deep plowing lighting industry, and the rich generation experience has accumulated a solid production capacity of the lighting products. However, the channels and channels are in the hands of the customers. In the past, they can only earn the very low profit of the generation workers, so the dream of bidding a round brand is the dream.

The biggest difference, however, is that in the past, the camping system of each lighting agent was slightly different. Taking the example of Tong Shida, it used to be the main agent supplier of GE, so it is very familiar with the lighting business of GE. Once the bidding is successful, the problem of cultural integration may be small. As for the sunlight lighting, it will be a challenge to deal with the cooperation relationship with the PHILPS lighting agent after the successful bidding of PHILPS.

LED lighting manufacturer

Sanan Optoelectronics

San an optoelectronic has been focusing on the upstream chip field. With the increasing capacity of LED chips, it will eventually need to find a way out for its huge chip capacity. Although it is in the package plant, the movement of alliance with the downstream manufacturers is continuous, but the control of the downstream port is always limited. The powerful product competitiveness, although it brings strong profitability, has not formed a strong brand influence. The lack of downstream brands and channels is the most essential difference between the Sanan Dynasty and the Samsung empire. Through the merger and acquisition of GE lighting, most of the problems of patent and brand access are solved once, and may be able to complete the expansion of the most core asset layout and take a key step to the Sanan empire.

Ma Lin Sen

He has succeeded in acquiring LEDVANCE's successful experience in the past, and because of the acquisition, he has LEDVANCE in the North American path and two strong brands of OSRAM Sylvania. Of course, he knows the market value behind the hundred year brand. Although he has two big brands in the North American market, these brands are still biased toward consumer lighting. If a successful acquisition of GE lighting will help it in the North American complement system and the standard case lighting business, and the overall business size is expected to jump to the first of the North American market. The goal of the top two lighting industry groups in the world is a step closer.

Equity investment fund

Jinsha River and IDG

Although Jinsha River's merger and acquisition of Lumileds in the U. S. government blocked the pain, but in the face of the opportunity to sell GE lighting assets, still can not hold back the impulse of capital pursuit of profit. Jinsha River investment projects in the LED industry are quite comprehensive, but the downstream investment projects have always been very successful. If they can be incorporated into the GE lighting, it is possible to reintegrate multiple LED investment projects with GE lighting assets as the core and play a full and active role.

IDG's investment in the LED industry is relatively concentrated, and the top and middle reaches of the stock are hucan, Hongli and Lin Sen, respectively. In the process of merger and acquisition (LEDVANCE), the IDG that makes a lot of money will not pass the mark of the American main battlefield. GE lighting income bag, whether it is incorporated into the listed companies, or resell, will not be able to make a hard profit, such a chance naturally can not miss.

Postscript:

Although the Chinese manufacturers are interested in the bidders, they are all extraordinary. However, it remains to be seen whether Chinese companies can chew on the hard bone of the US 100 year lighting brand from Trump's hands at the sensitive time of the Sino US trade war. From the point of view of the industry, the recomposition of this asset and the reconfiguration of resources are beneficial to the industry and the benefit of the capital as well as the consumer. However, it is unforeseen that the hand of the supervision will not be the name of the country.

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