Daimler Foton will consider establishing a China h

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Daimler Foton will consider establishing a China heavy truck joint venture

Daimler Foton will consider establishing a China heavy truck joint venture

China Construction machinery information

the plan of "Foton Daimler curve joint venture" which has been in the approval process for one year has been abandoned. On November 30, Foton announced that it would terminate the "private placement plan for daik" and that the two sides would consider establishing a China/heavy truck joint venture. This is a new choice for Daimler after the "curve joint venture" was denied by relevant departments. However, it is worth noting that according to the private preliminary agreement between the two sides, Mercedes Benz's high-power engine will be introduced to Beijing for production

Fukuda explained that since January this year, "China's overall economic environment, especially the stock market price, has undergone major changes. Despite the efforts of Beijing municipal leaders and both sides, it has not been approved by the government." In this case, the curve joint venture aborts

according to the analysis of insiders, the main reason is that the national development and Reform Commission hopes that Daimler will not block the advanced technology too tightly, and can really share it with Chinese enterprises. In addition, the CSRC and other departments believe that the purchase price of 2.75 yuan per share is too low, which will cause disputes over the loss of state-owned assets

previously, Daimler hoped to directly invest in Foton instead of plastic extruder, which is one of the machinery imported next to injection molding machine in China's plastic machine foreign trade market, and set up a joint venture with Foton. According to the agreement in November last year, Foton issued additional shares to Daimler, after which Daimler owned 24% of its shares. Since Foton's share price was not high at that time, it was priced at only 2.75 yuan per share, and Daimler only needed to pay about 818 million yuan. The secret of this additional issuance is that after the additional issuance, Daimler accounted for 24% of the shares, less than 25% (more than or equal to 25% is a Sino foreign joint venture), which is conducive to circumventing the complex approval procedures

the low-cost investment in Foton and the way of curve joint venture have made relevant departments doubt Daimler's sincerity. Not only that, unfortunately, at that time, the national development and Reform Commission regarded the shareholding of more than 20% of the blow molding industry in the automotive industry, which is dominated by plastic film blowing machines, as a joint venture, and it was necessary to participate in the approval process. Therefore, the approval at the government level was delayed again and again. From the submission of approval materials in January 2007 to the announcement of abortion, the delivery date of Daimler's additional shares was postponed twice

the termination of the "private placement of Daimler" means that Daimler cannot obtain the opportunity to invest in Foton through a shares. The loss of this opportunity is a substantial increase in the cost of the joint venture for Daimler

giving up is obviously Daimler's helpless move. On October 23, when measuring the size of the sample and asking the author whether to consider changing the mode of cooperation, Daimler chairman Zetsche insisted, "we still hope to complete the Foton project by purchasing some shares, and we have no plan to increase our holdings." There are only 7 days left from the second delivery date after the postponement

After the collapse of the "curve joint venture", Daimler had no choice but to cooperate with Foton

according to the cooperation (understanding) agreement signed by both parties on November 30, both parties will consider establishing a Sino/heavy truck joint venture. According to the senior management of Foton, Daimler has reached a consensus with Foton and the relevant competent authorities in Beijing. Daimler has changed to a comprehensive joint venture with Foton in accordance with the national automotive industry policy, that is, the two sides set up a 50:50 equity joint venture to introduce and produce Mercedes Benz brand medium and heavy trucks

the news I got is that Foton will invest more than 1billion yuan in the production line and plant of Auman, an independent heavy truck. As a counterpart investment, Daimler needs to invest more than 1billion yuan of real gold and silver. After a comprehensive joint venture, Daimler will definitely pay a higher price than the number of private placements

Lin Muhong, an auto analyst at industrial securities, said that the previous way was to spend 800million yuan to acquire 1/4 equity of the whole Futian, but now the way is to spend 1billion yuan to account for 1/2 equity of the joint venture, which of the two ways is better or worse is clear at a glance

it is reported that if Mercedes Benz heavy trucks are produced, Foton automobile needs to transform the Auman heavy truck factory in Huairou and rebuild the production line for Mercedes Benz heavy trucks. However, Auman models will not disappear and will exist as the independent brand of the joint venture. At present, the two sides have not signed a formal joint venture agreement. On December 17, the Foton extraordinary general meeting of shareholders will vote on this

it is worth noting that according to the results of the negotiations between the two sides, Mercedes Benz's 12 liter high-power heavy truck engine will be introduced into the future joint venture. This will be the first time that Mercedes Benz will export engine technology to China. BAIC holding executives said with emotion that in the future, the production capacity of Foton and Kang modified plastics will be expanded by about 60%. Mins will produce internationally leading light truck engines together with Mercedes Benz, and the competitiveness will be greatly improved

raise 1.2 billion yuan and continue to promote

after Daimler withdrew from the list of private placement, Foton will raise 1.2 billion yuan in private placement

it is reported that Foton has launched a new plan of private placement, that is, private placement to no more than 10 specific institutions, with the number of 100million shares to 111.2 million shares, of which BAIC holdings plans to subscribe 40million shares in cash; Other specific investors subscribe for no more than 71.2 million shares in cash. The issue price shall not be less than 9.88 yuan/share

compared with the previous plan, the total amount of funds raised is not much different. The original plan plans to raise 1.172 billion yuan, while the new plan does not raise more than 1.232 billion yuan. However, the additional issue price has increased significantly

Foton secretary office said that the additional issue price refers to the stock price of the last 20 trading days, so it is nearly three times higher than the additional issue in November last year

it is reported that the raised funds will be invested in the registered capital of Foton Cummins engine company, Beijing bus branch and OMAC automobile factory respectively. The technical transformation project of Auman heavy truck body welding production line in the old scheme is not included in this investment. Insiders said that Auman heavy truck body welding production line is already in the future joint venture, so it will be transformed after the establishment of the joint venture

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