Chapter 272 Watsons Acquisition and Subsequent Planning

Chapter 272 Watsons Acquisition and Subsequent Planning

Chapter 272 Watsons Acquisition and Subsequent Planning
In the next few days, Lan Jun's team began formal contact with Watsons and HSBC.

The boss of Watsons was obviously thinking of selling the loss-making assets in Hong Kong and then returning to the UK as soon as possible. After being forced to lower the price many times, he was so angry that his face turned red, but he finally sat down to negotiate, which allowed Lan Jun to gradually test his bottom line.

Finally, on April 4, after half a month of negotiations, the three parties reached an agreement, and Changxing Group acquired Watsons for HK$6 million.

As a middleman, HSBC received a 6% commission, one of which was an introduction fee and the other was a guarantee fee. After receiving this money, it had to guarantee that the information previously provided by Watsons was not a big scam.

This is not only a legal responsibility, but also a brand responsibility. If Changxing Group was cheated, HSBC, as the middleman, also needs to help the victims hold the scammers accountable, otherwise its reputation in the Hong Kong business community will be damaged.

"Mr. Yang, congratulations, you have acquired the first British company in Hong Kong." Sanders said with a smile: "This will soon become a business legend in Hong Kong."

"I have to thank Mr. Sanders for the introduction." Yang Wendong said with a smile.

Watsons is indeed not a big company in Hong Kong, but it is also a British company with some fame. It was originally a large pharmacy in Hong Kong in the 1820s. After being acquired by British capital, it has been in operation until now. It can be said that it has been with Hong Kong people for several generations.

In the days when there were few hospitals, most people went directly to the pharmacy to see a doctor, so its popularity was still very high.

Sanders said: "This time it was just a coincidence. Watsons does retail, and you also do retail, although there are some differences, so I introduced you."

“Although they are both retail, there are still big differences.” Yang Wendong said casually: “Retail is also a very broad concept, just like manufacturing, it involves tens of millions of types.”

"Mr. Yang is right." Sanders said, "Mr. Yang, although I know that you won't have any problems repaying your debts given your ability, HSBC is currently Watsons' creditor bank, so I also want to know your future plans.

It doesn't need to be very detailed, just a rough outline will do. HSBC also needs to have a record of every major transaction. If Watsons can flourish in your hands, then HSBC will have made some achievements."

"Okay." Yang Wendong also understood that HSBC actually wanted to prepare for future financial mergers and acquisitions.

In the past, HSBC's company, Wardley, was a professional financial company. Many of the commercial mergers and acquisitions in Hong Kong in the next few decades, whether malicious or well-intentioned, had Wardley behind them, including the milk of Hong Kong Land, Pao Yugang's battle with Jardine Matheson, Wheelock's mergers and acquisitions, etc.
Then he said: "I will continue to operate Watsons' current businesses, but the pharmacy and cosmetics will be operated separately, each selling its own products. The property area can be smaller to increase the number."

This is true. For street service industries such as drug stores and cosmetics stores, the biggest cost is the rent of the shop. If you own the property and manage it more reasonably, you will not suffer losses.

Sanders nodded and said, "With Mr. Yang's financial resources, this is a small problem. In addition, you also have a media company, so these two businesses can definitely be revived."

Yang Wendong smiled and said, "It's never a good idea to rely on external help for a long time, even if it's your own company, so you still need to run it seriously. I can't tell you how to do it now. You'll know when you do it yourself later."

"Yes, everyone can talk about the theory, but it is very difficult to do it well." Sanders asked again: "What about Watsons' beverages? This market is huge, but the competition is even more intense."

"Yes, it's very intense." Yang Wendong replied: "I also have some ideas, but I can't reveal too much to the public at the moment."

"Okay, I understand. Then I'll wait for the day when Watsons can regain its former glory." Sanders said with a smile.

"I hope so too." Yang Wendong nodded.

At worst, I can also copy the operation of Li Jiacheng in my previous life, but it will take a long time to open cosmetics stores in so many markets around the world. However, I can do this first step in Hong Kong.
The next day, Oriental Daily immediately exposed the news: [Century-old brand Watsons Huaying changes hands]

Although this kind of acquisition is not of a listed company, the replacement of the entire management team by British foreigners cannot be concealed. It is impossible for Watsons insiders not to know about it, so naturally, this bit of news popularity must be used to protect their own people.

“Watsons was acquired by the sticky note king?”

A woman who had just bought a newspaper said with some surprise after reading the content.

After hearing this, the man beside her quickly turned his head to look at the newspaper in the woman's hand: "It's true. As far as I remember, Watsons is the oldest company in Hong Kong, older than Jardine Matheson and HSBC."

"It was early enough, but it didn't develop very well." The woman said with a smile: "Now it has been acquired by the Chinese."

The man thought for a moment and said, "This should be the first time that Chinese people have acquired a large British company, right?"

The woman said, "Watsons isn't considered a large store, is it? It's medium-sized at best, but this is indeed my first time here. A small business like that doesn't count."

Hong Kong has been established for more than a hundred years. Countless British people came here to seek opportunities and established many companies. Among these companies, many went bankrupt, and naturally some of them may have been acquired by the Chinese.

But these are all very small-scale companies and will not attract any attention from the society. But this time it is different. Although Watsons is far inferior to large foreign companies, it is also a relatively well-known British company in Hong Kong. When it comes to pharmacies, many older people immediately think of Watsons.

"This sticky note king is really developing rapidly." The man paused and then said, "Do you think he will acquire a larger foreign company in the future?"

The woman replied: "That's unlikely, right? Would those foreigners in Hong Kong agree to that?"

"That's true." The man nodded and didn't dwell on the topic anymore.

"Yang Wendong acquired Watsons?"

In an office in Central, Huo Yingdong was a little surprised after seeing today's Oriental Daily.

After hearing this, the man next to him also hurriedly asked: "Watsons? Isn't it the old Hong Kong Pharmacy?"

"Yes, Mr. Ding has only been in Hong Kong for two years, right? How come you know the history of Watsons?" Huo Yingdong asked with a smile.

"I know a little bit. I had learned about most of the companies in Hong Kong before I came here." Ding Kejian, the person in charge of China Resources in Hong Kong, nodded and said, "And Watsons also has some cooperation with China Resources. They also buy some of their traditional Chinese medicines from us."

"So that's how it is." Huo Yingdong added, "Watsons is not a big company, but it is also a well-known British company. Yang Wendong's acquisition this time is of some significance."

"Is Hong Kong Chinese capital about to rise?" Ding Kejian asked.

"That's what I mean." Huo Yingdong said, "In fact, the overall scale of Chinese capital has been growing over the years. Although it is still far behind British capital, the trend has already emerged.

Yang Wendong is the first person among Chinese investors. Now he has acquired a small company with British capital, which is also a well-known company. I wonder if he is trying to test the intentions of the Hong Kong government or British capital. "

Ding Kejian thought for a moment and asked, "Mr. Huo, are you overthinking it? Is it possible that Yang Wendong just has a crush on Watsons?"

“Haha, maybe I’m just imagining too much.” Huo Yingdong smiled and said, “Watsons has been losing money over the years, so it’s possible that it’s seeking to sell.

It’s a little strange why Yang Wendong would make the acquisition. None of Watsons’ main businesses are easy to operate.”

"Maybe it's because he's attracted by Watsons' property?" Ding Kejian asked again.

Huo Yingdong shook his head and said, "I don't think so. Watsons' properties are not bad, but if you are willing to spend money, it is not impossible to find something similar. It's just a little more troublesome.

But if you still acquire Watsons for this little property, that would be troublesome. If those businesses are losing money, you will have to put money into it, and you have to support so many people.

Judging from Yang Wendong’s previous behavior, he still cares about the workers. Even if it’s for fame, he will continue to do this to protect his reputation.”

Ding Kejian thought for a moment and said, "Perhaps Mr. Yang is just after Watsons' loss-making businesses. With his achievements in becoming almost the No. 1 Chinese in Hong Kong in just a few years, he may have already considered some of Watsons' businesses."

"Well, that's the only explanation." Huo Yingdong nodded, then asked, "What do the higher-ups think of the museum proposed by Yang Wendong?"

Ding Kejian replied: "The higher-ups still agree that we can sell a batch of folk antiques. As for calligraphy and paintings, as long as they are not from very famous people in history, they can also be sold. And there is no problem in renting national treasure-level antiques. The antique calligraphy and paintings that can be transported to Hong Kong will be of a higher grade, but a deposit may be required.

As for how to cooperate, we still need to discuss it.”

"Okay, I think Mr. Yang will agree to this request." Huo Yingdong was overjoyed.

This cooperation is really perfect. Yang Wendong has gained a new industry, Hong Kong citizens can visit ancient cultural history, and the mainland can earn foreign exchange.

The only pity is that this kind of cooperation, at the national level, will not provide much funding, making it difficult to solve the current huge foreign exchange gap problem.

Ding Kejian added: "The higher-ups also agreed to send experts from the mainland to handle the entire process from transportation to local care in Hong Kong and then shipping away.

This will also minimize damage to antiques.”

"Well, that's good. The protection of antiques is the most important thing." Huo Yingdong agreed.

Although these people will receive foreign exchange as a result of their participation, this can only be regarded as a pleasant surprise. Their more important responsibility is to ensure that there are no problems with the antiques.

Otherwise, the entire cooperation may fall through.

Ding Kejian asked again: "Then we will go find Mr. Yang later. I hope this matter can be settled quickly."

"Maybe soon." Huo Yingdong thought for a moment and said, "Many of his second-hand ships will soon arrive in Hong Kong, and we will discuss the grain transportation issue by then."

"Yes, this matter is more important." Ding Kejian nodded.

……

The change of ownership of Watsons caused a small backlash in Hong Kong's business community, especially since many people knew that HSBC was behind the success of this business.

As HSBC's quasi-central bank in Hong Kong, this small move is of certain significance.

Not to mention whether Chinese capital will be able to acquire large and medium-sized British companies in the future, this incident alone has made clear HSBC's new management's attitude towards Chinese capital in the future.

On April 4, Yang Wendong came to the Watsons beverage factory in North Point, Hong Kong Island:

Many people were already waiting at the door, including Wei Zetao.

"Mr. Yang." Wei Zetao stepped forward and said, "My people took over several factories of Watsons yesterday, and met with the heads of each store."

"Well, where are those foreigners?" Yang Wendong asked.

Watsons is a British-owned company. Its management structure is similar to that of many British-owned companies. All the senior executives are foreigners. Even if a Chinese has made great contributions, it is already very good if he can make it into the top ten powerful circles.

Previously, it was easiest for his company to poach people from similar British companies because many capable Chinese had reached their development limits.

Wei Zetao said: "We are discussing with them. They still want to stay, but I am not going to keep them. According to the law, we can just pay them compensation and let them go."

"Will they leave a hole for us?" Yang Wendong asked in return: "These people more or less have a lot of the company's original resources, right?"

"Yes, they are the ones who contacted many external channels." Wei Zetao replied: "But these people have worked in Watsons for so many years, and their hands have more or less been stained with some dishonorable things.

If they really dare to turn against us, then we can investigate the past and maybe send them to jail. They are just small characters. If they were not white, they would not be so arrogant. "

"Well, we can't do this unless we have no other choice." Yang Wendong said.

This is actually a tacit understanding in the business community. If you do this today, it is legal.

If you want to acquire other companies in the future, you will face endless resistance, which is also a reality.

However, if these people are ignorant, then killing the chicken to scare the monkeys is still an option. Although Hong Kong is now under British control, the law can still target the British, especially small people like this.

Not to mention now, even in the 19th century, British people who broke the law in Hong Kong were sentenced to death. The only difference was that the Chinese at that time were sentenced to beheading according to the Qing Dynasty law, while the British were sentenced to hanging.

"But they don't dare to gamble." Wei Zetao said with a smile: "These people have worked in Watsons for their entire lives, but have achieved nothing and caused the company to suffer heavy losses. They are termites.

I checked before, and basically there are few capable people, and they all look down on Chinese people. We can't keep such people."

"Okay, you decide." Yang Wendong added, "But with our current scale, it's okay to recruit some foreigners to work for us. Especially for some positions that require deep connections with Hong Kong, Britain, Europe and the United States, it's more convenient to use foreigners."

Given the current size of Changxing Group, some positions actually no longer care much about the higher salaries offered by foreigners.

Wei Zetao agreed: "Okay, then I'll find some suitable foreigners for trade exports and legal affairs."

"Yes." Yang Wendong asked again: "Then how do you plan to operate Watsons' various businesses in the future?"

Wei Zetao replied: “Each Watsons store will still operate as before, but will be separated into different businesses, either pharmacies or cosmetics stores.

If the location or area is not suitable, then change the location when the lease expires.

As for the soda business, I have already asked someone to poach people from Swire or United Soda, as this business still requires professionals.”

"Well, OK." Yang Wendong nodded, and then said: "If you find a suitable person, I will also take a look after you finish the interview.

When Watsons grows in size, it will become independent and a separate business under the Changxing Group."

Currently, the companies or businesses under the Changxing Group are divided into several levels. For example, Changxing Real Estate, Changxing Shipping, Changxing Industry, Changxing Media, Carrefour, etc. belong to the first level and all report directly to the boss Yang Wendong.

The businesses under these companies are the second level, and there will even be a third level in the future.

Watsons will be a first-tier brand in the future, and its cosmetics retail and beverages are both in the super-large-scale market.

"Okay." Wei Zetao agreed.

Yang Wendong had told him long ago that Watsons was only temporarily under the name of Changxing Industrial, and would become independent once its new internal team had run the company to a certain level.

This is also the first business that the boss has paid special attention to this year.

Yang Wendong looked around and said, "Let's go around the factory first. I'll also take a look at the beverage making equipment."

……

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(End of this chapter)