Chapter 666 Acquisition of British Electrical Company

Chapter 666 Acquisition of British Electrical Company

Chapter 666 Acquisition of British Electrical Company
Daniel smiled and said, “That’s because the owner of this company is an Argentinian who came to the UK after World War II to start a business, namely Pifco, and has made some achievements in the past 20 years;

But now, maybe because I am older and my children are living in Argentina, I want to go back, so naturally I have to sell the company in the UK.”

"So that's how it is. We Chinese have a saying that fallen leaves return to their roots. It seems that it's the same abroad." Yang Wendong said with a smile.

Young people may not feel anything about this word, and they don’t care whether they are in their hometown or not. Some rebellious people even want to go to other places when they are young and don’t want to be with their families.
But when you get older, you will always unconsciously recall the past, especially your childhood, and your homesickness will become stronger and stronger. Eventually, all other careers can be put aside, unless your family is together in another place, then it may be better.

Daniel added: "Actually, it's because the UK is not as good as it used to be. Argentina is not bad, the living environment is better, and I often travel to South America."

"Is Argentina's economy doing well now?" Yang Wendong was not very clear about this.

Daniel smiled and said, "Yes, Argentina and Brazil both have very good economies, with developed agriculture, mining, and industry. In addition, there are a small population and a small population, so they are actually very suitable for living. We at Standard Chartered have also developed business there. If Mr. Yang is interested, he can also invest in Argentina."

"Let me think about it." Yang Wendong didn't say much.

In fact, the 1960s and 1970s were indeed the peak period for South American countries. Like the United States, they perfectly avoided World War I and World War II, and took advantage of the huge demand for wars in Europe and even Asia to make a lot of money. Maybe not as much as the United States, but they certainly ate a lot of meat;
In addition, the country has abundant mining resources, agriculture is blessed by nature, the natural environment is good, and the population is not large. With all these conditions combined, it is hard not to be developed.

In European history, even many countries envied Argentina. There is also a famous saying, "He is as rich as an Argentine."

However, as the back garden of the United States, this is the biggest tragedy of South America. It is very close to heaven and even closer to the United States. It will be economically harvested by the United States many times in the next few decades. Eventually, it is so exaggerated that in a big agricultural country like Brazil, many people will not have enough food. Even the reason why Brazilian football is so strong is that for many children, being good at football is the only way out, because the education system has collapsed.

Of course, Yang Wendong had not studied the history of South America's decline in his previous life, so he was not clear about the process and naturally would not invest. When these countries encountered economic problems, he might buy some farm land or something like that. Especially in the 80s, the land policy was still lifelong, and this was a permanent and scarce resource on the earth.

And now it is naturally impossible to invest.

Soon, the car arrived in front of a factory. At this moment, there were already several foreigners waiting at the factory gate.

"Is the old man in the middle the Argentine boss?" Yang Wendong asked, looking at the crowd in front.

Daniel replied, "Yes, his name is Mr. Ricardo."

After everyone got off the car, Daniel was the first to go and shake hands with the old man Ricardo. After a few quiet greetings, he turned to Yang Wendong and said, "Mr. Yang, this is Ricardo, the boss of Pifco. Mr. Ricardo, this is Eric Yang, a successful businessman from Hong Kong."

"Hello, just call me Eric." Yang Wendong said with a smile and shook hands.

For ordinary Western businessmen, Yang Wendong always asks to call them by their names, which is much more convenient. But for people like Daniel who work for others, this is naturally not necessary, unless they are CEOs of Fortune 500 companies, then they are of equal status.

Ricardo also shook hands and said with a smile: "Hello, Eric, I also read your information some time ago. I have to say that I really can't imagine that there are people like you who started from scratch and achieved such success in this world."

There are very few people in this world who have started from scratch, and very few who have succeeded. Most of them more or less relied on their first pot of gold or first business supported by their original family.
Being able to become a top-tier financial group is something that many families may only achieve after several generations.

Yang Wendong smiled and said, "Thank you for the compliment. I was just following the flow."

In fact, before the emergence of electronic technology and the Internet, it was almost impossible for traditional industries to produce a successful newcomer like Changxing Group. Even Samsung rose to prominence with the help of electronic technology.

One reason is that traditional industries develop slowly. Even if there are resources, it is difficult to open up channels. The other reason is that traditional industries have long been controlled by other existing financial groups. It is too difficult to find new cakes in traditional industries.
The rise of Changxing Industrial was also due to the golden finger of the prophet, which gave it the opportunity to eat a lot of non-existent new market cakes;

Otherwise, for real entrepreneurship, it would be great to achieve Ricardo's current results and own a small brand factory.

"Haha, Eric, it's raining outside, let's go in and take a look at the factory first." Ricardo continued. Yang Wendong agreed, "Okay, please."

The weather in the UK is that it rains frequently, although not heavily, but there is little sunshine. This is the case for more than half of the year. This makes Chinese people who like to bask in the sun very unhappy. Yang Wendong is the same. Fortunately, he usually does not live there for a long time.

After entering the factory, everyone took a tour around the workshop. A female explainer introduced Pifco's products to Yang Wendong in fluent London-accented English. The core products included various kitchen appliances, irons, hair dryers, etc., all of which were small household appliances.

After coming out, everyone went to the conference room again, and the speaker once again informed Yang Wendong and others of the company's approximate operating data, but this was only for outsiders to see, and the internal core data would not be provided for the time being;

For this kind of acquisition, it is not that you just ask for it and they will give you their core information. Instead, there usually needs to be a middleman first, and then the acquirer pays a fee as collateral. This is to avoid the failure of the acquisition and to compensate the acquired party. This is also the reason why many acquisitions on the Internet in the past required additional compensation once they failed.

At the same time, a memorandum of understanding needs to be signed. Only after signing will the core data be given. The memorandum is also a contract. If the acquisition fails, the acquirer also needs to destroy the data. What you have seen in your head cannot be told to outsiders.
After the meeting ended, the group had a steak lunch nearby, and then Yang Wendong and the others said goodbye and left the factory;
Yang Wendong was just here to take a look today and would not make a decision immediately. He would wait until all the information was complete before making a decision.
On the way, Daniel asked, "Mr. Yang, what do you think of this company? Can it meet your needs?"

"If we look at their data, it is possible." Yang Wendong nodded and said, "But what was said at the meeting must have been beautified. I have already arranged for someone to do a market survey."

"Okay, that's as it should be." Daniel said. It's impossible for an acquisition to be finalized in a few days.

The acquirer will also conduct market-level investigations, such as consumer feedback, dealer feedback, and may even purchase some products to conduct relevant research and testing.

After returning to the Ritz Hotel in London, Huang Haonan, a vice president of Honor Electronics Group, came to report: "Mr. Yang, here is the information of Pifco in the UK, please take a look first."

After that, he handed the information to the boss and also gave a verbal introduction: "Pifco's core business is kitchen appliances, hair dryers, irons, etc., but its core is actually heating control. This is the commonality of these products."

"Heating? That's right, these devices are all heated." Yang Wendong said with a smile.

Huang Haonan continued: “Pifco has very good technology in heating, and its products are selling very well in the UK. These products are complementary to our business in Hong Kong.

However, there is one overlap, that is washing machines. Although Pifco does not have a washing machine business, it is also a supplier of many British washing machine brands, specializing in the supply of heating parts. "

"Europe and America do not have the habit of drying clothes, so heating the washing machine is a necessity." Yang Wendong nodded and said, "But maybe one day our future washing machines will also need to be supplied overseas, which can be considered complementary."

In the UK, there is little sunshine, so people don’t hang clothes out to dry. In addition, energy is cheap in this era, so using electricity for heating doesn’t cost much, is fast, and saves time. It is even more effective than sunlight in killing bacteria and parasites.

While people can sunbathe in some European countries, it is basically not allowed in the United States because the law does not allow it. As for why there are such regulations, Yang Wendong does not understand.

"Yes, but washing machines in Europe and the United States are rarely found in households. Plus, there's a lot of competition, and washing machines are large items with high transportation costs. For us, it's still a bit far-fetched," Huang Haonan added.

"Yes, it is indeed quite far away." Yang Wendong continued to ask: "Then how is Pifco's performance in terms of quality and after-sales service?"

Huang Haonan replied: "From the market feedback, this aspect is not bad. Another point is that the structure of the heating equipment itself is relatively simple. The core is to control the temperature.
The temperature control components used by Pifco are all from the German Siemens brand, so the quality is very stable.”

"If you look at it this way, it's enough." Yang Wendong nodded and said, "Then you will be responsible for contacting Standard Chartered Bank, signing a memorandum of understanding, and then checking their technical and financial information. If there is no problem and the price is about right, report it to Wang Zhiqun, and he will decide what to do."

"Yes, Mr. Yang." Huang Haonan agreed.

PS: Please give me a monthly ticket
(End of this chapter)