OSRAM is throwing the ball to MLS, praise people worry!

After a year of carefully selected, OSRAM in July 26th will no doubt throw Hydrangea Rawlinson, "dowry" nearly 3 billion yuan. The subject of the transaction is OSRAM's light source business, that is, its LEDVANCE company.

The transaction amount is far below last year's valuation of 6 billion 900 million yuan, mainly because OSRAM canceled the sale of patent patent number 1000 collocation, and remainder; the transaction with OSRAM LED chip on Linsen purchase agreement.

However, the transaction is not to focus on the LEDVANCE company of the "shell", Linsen fancy is the OSRAM brand (including North Sylvania brand) 10 years tenure with the channel, so that the transaction is still essentially OSRAM marries Linsen "". OSRAM and a "love" by Linsen praise and blessing from all sides, however, there are concerns about the song singing sigh, shaking the voices of doubt.

Worried that the acquisition of OSRAM business as Linsen light source, is likely to become the global LED market third hegemony, when the global LED market will face PHILPS, OSRAM, M.L.S. three dominant "devastated", the survival and development of enterprises will increase the pressure of LED times.

Part of the skeptics believe that: before the Buddha and OSRAM cooperation for many years did not see any practical results. OSRAM's light source business has been more than a quarter of the EBITA (tax interest rates before depreciation and amortization) negative value, which means that after the completion of the acquisition of wood wood will immediately begin to target blood transfusion. This merger is not cost-effective, may bring huge loss.

Another part of the question that the current rapid development momentum of MLS, and the unique operation of the market means, I am afraid that OSRAM will future global LED market second hegemony over Jean Zimlinson. OSRAM this is "Taohuajie Rawlinson".

OSRAM, too old or beautiful?

OSRAM's sale of the lighting business, that is, LEDVANCE, mainly light source business, including the traditional light source and LED lighting source, there are part of the lighting business and smart home lighting business. OSRAM bid so far, China's LED industry has always been the value of the subject of much controversy.

OSRAM, in the end is too old or beautiful? The focus may be on the following aspects:

(1) OSRAM's core business is not the most valuable in the spin off business, the sale of business value is not high?

A company will sell their core business, to the acquisition of OSRAM's core business is basically impossible, unless the entire OSRAM bought, or OSRAM or OSRAM switch, a new core business, if so, the old core business is no longer the core business.

(2) OSRAM brand can only be used for 10 years, this is not worthwhile?

Ten years Hedong Hexi in the past ten years, if the use of good for 10 years, enough to change a lot of things. The OSRAM brand for a shorter M.L.S. Linsen, with the international giants of the starting line gap. If the OSRAM brand M.L.S. truly play the role of "hard, perhaps no need 10 years to catch up with the international level, 10 years after OSRAM to recover the right to use the brand does not matter.

Unfortunately, OSRAM only authorized the use of the patent has not been sold. M.L.S. need more time to improve their level of core technology. But we should also see that the use of OSRAM products patent helps to break the international patent blockade Rawlinson, successfully put the products into the international market.

(3) why OSRAM to sell this brand? If the brand has a good future, OSRAM will sell it? If the future is not good, it is worth to pick up?

OSRAM in order to solve the problem of their own bloated structure, in order to focus on the focus of the business, had to cut profits relatively low light source business, that is, LEDVANCE. But it can not be considered worthless, it is reported that the company's revenue in 2016 is expected to 14 billion 700 million yuan.

(4) M.L.S. find a decline of the aristocracy to decorate their facade is not confident?

M.L.S. also not dumb enough to spend 3 billion RMB only to tokenism. If just as tokenism, build a world's most spectacular lighting Expo building.

In fact, "value" is essentially the "need"". OSRAM's light business, there is no value to see who, to see who needs this business, need to have a value. That light Linsen business, the actual situation of their own needs as for OSRAM, OSRAM business Linsen, light source is valuable.

European wood "elder sister and younger brother love", peach blossom or peach blossom robbery?

Bid for OSRAM, MLS policy is the main "complementary" brand, business cooperation with OSRAM stressed its "". But in the commercial competition level, the business sold to OSRAM light wood Linsen, there are some hidden dangers factor in the cooperative case. OSRAM and our "love", "peach blossom" or "peach blossom", both sides need to test the attitude and wisdom in the future.

First, OSRAM and the next door aunt PHILPS group is not the same, PHILPS group bearish LED industry, OSRAM optimistic about the LED industry.

OSRAM to sell light source business with last year's PHILPS group to sell Lumileds, two cases of different cases. Sell Lumileds