Why do Chinese LED companies do not want to buy votes votes to buy the giant cake?

2015, China's LED enterprises Hao smashing tickets cross-border mergers and acquisitions increasingly frequent. The development of crystal to be acquired, the OSRAM Puri audio channel business, a Jinsha River investment led PHILPS Lumileds bag...... Why is it so frequent among multinational companies? What is the driving force behind a pile of mergers and acquisitions? China's LED industry is good or bad? With these questions, the reporter interviewed a number of people in the industry to explore the secret of cross-border mergers and acquisitions craze.

Why are overseas companies looking for Chinese buyers?

Into 2015, cross-border mergers and acquisitions case surging, we can not help but ask, why these overseas companies will sell themselves to Chinese companies?

Ai Weixin, chairman of Nanjing Energy Technology Co., Ltd., told reporters that in recent years, the world economic pattern of continuous change, adjustment, for the economic development of the countries to provide new opportunities for the. With the development of China's economy and the promotion of comprehensive national strength, the domestic enterprises have also been constantly developing and growing, and more and more enterprises are in line with international standards, and they are playing an important role in the international arena. Chinese going out of business, mergers and acquisitions of foreign enterprises, and even some international well-known enterprises, this is not news, but there are many successful cases, such as Lenovo's acquisition of IBM PC business, Geely acquisition of Volvo car business, especially the recent LED lighting industry also has a China acquisitions of international famous brands. "

So why are overseas companies looking for buyers in China? Zhang Congfeng summed up the following reasons: one is the economic environment and the situation Chinese good, conducive to the industry and the development of the enterprise; two is the China enterprise good economic base, there are sufficient funds and anti risk ability; three is China with the vast majority of consumer groups, enterprises can ensure sufficient market space; four is the economic globalization is inevitable choose the combination of Chinese and western, complementary advantages, is conducive to better development of enterprises.

Shenzhen flying Thai Technology Co., Ltd. chairman Dong Pei bluntly: if you do not sell to China, it is estimated that no one bought. Because LED in the next ten years, the whole industry chain can only afford to do well in China, and now sell, they have value, the later the sale, their value will be severely reduced. "

Romney photoelectric system technology (Guangdong) Limited company general manager Peng Yinshui also said that this view agrees: "first, Chinese is the world's largest LED manufacturer in the downstream applications, eager to make a breakthrough opportunity; secondly, as long as there are good projects Chinese listed companies financing channels is still relatively good; furthermore, little LED chip the gap between technology and European companies in Japan and South Korea, not willing to pay too high a price to buy the European and American enterprises. "

Shanghai bo'en WorldCom Au Optronics Co general manager Lin Yujie also said: "China is the biggest Chinese manufacturing LED, LED is also the biggest consumer market, at the same time, the state also encourage local enterprises to go, mergers and acquisitions of some brand, technology, intellectual property rights of foreign enterprises. In such a big environment, the best outcome of these foreign companies is the acquisition of domestic enterprises. "

In the constant power Operation Director Wen Shi paive view, LED technology is not in the first Chinese invention, but in cultivation, nourish the soil Chinese flourish, domestic LED application industry has to provide all kinds of products and services for more than 80% of the world market, the domestic LED industry chain has been very mature, both in the application of lighting technology or in the manufacturing cost of domestic LED enterprises have absolute advantage.

At the same time, he exclaimed: "usually the product to meet the market demand conditions, the high cost of development is flawed, we can see that foreign companies can see, its market is Chinese enterprises gradually swallowed, rather than pick a good time to sell a good price, return of capital development projects of their own advantages. While searching for the world, the most qualified buyers in addition to China enterprises are second to none. This pair of buyers and sellers, competition and win-win situation, each benefit. "

Why do Chinese companies pick up giant cake?

In fact, for overseas giants why give up years of operation of the business, there is a consensus in the domestic lighting industry: that is, with the increasingly fierce price competition, PHILPS, OSRAM and so on more low profit industries, to a higher gross profit margin area of the blue sea. So, Chinese enterprises pick up the giant cake, but also based on what motives and purposes?

Ai Weixin, chairman of Nanjing Energy Technology Co., Ltd., chairman of believes that technological innovation, intellectual property rights, market development, the global layout is the main consideration of Chinese LED multinational acquisitions. Foreign companies are generally more emphasis on technological innovation, good at scientific research into product technology, and applied to the market. Continuous technological innovation to bring considerable economic benefits to the enterprise, while ensuring the vitality and stability of the technical team, which is the foundation of the development of the LED industry. At the same time, in the face of the international market, Chinese LED companies want to make a difference in the international market, we must first comply with international rules, intellectual property is an important topic can not be bypassed. The core technology and patent of LED industry, especially the upstream LED chip and packaging technology mostly monopoly in international tycoons, such as PHILPS, OSRAM, CREE and other international brands nichia. "

He further said, if you can acquire and own or enjoy the intellectual property rights of international enterprises, patent rights, the development of the international market for Chinese LED companies to help a lot. China LE