Recently, international lighting giants Philips and Osram have been moving frequently. After OSRAM announced the spin-off of the general lighting business segment, domestic companies including Feile Audio and Mulinsen responded positively and clearly expressed their intention to bid.
Why are domestic companies so happy to be "setters" by the assets that are being sold by the lighting giants? The industry believes that on the one hand, the foundation and strength of China's lighting industry is gradually increasing. On the other hand, the huge domestic production capacity encounters foreign trade barriers. The competition is fierce, and the domestic corporate brand premium is low, mostly to earn weak processing profits. The acquisition of Osram's spin-off assets will help companies go out to find the blue ocean and enhance the brand and internationalization of Chinese companies.
Domestic companies rush to snap up
This year, international lighting giants Philips and Osram have all exposed the news of the spin-off sale of related assets. On March 31, a Chinese-foreign-invested consortium funded by Jinshajiang Venture Capital successfully acquired a 80.1% stake in Lumileds, a lighting company owned by Philips, for $3.3 billion. Lumileds is the world's leading lighting equipment manufacturer, including lighting components, universal Lighting, automotive lighting and mobile electronics lighting.
In June of this year, Osram, the world's second largest lighting company, spun off its channel business and caused great concern in the capital market. The industry rumored that many domestic companies are interested in participating in the bidding. On July 22nd, Feile Audio announced that it intends to issue a non-binding letter to OSRAM, expecting to acquire the channel business of Germany Osram's planned spin-off, and hired HSBC Hong Kong as the exclusive international financial advisor for the company's acquisition of OSRAM lighting business project.
Feile Audio said that OSRAM's channel business and corporate business are highly synergistic in many aspects such as global market expansion, large projects and channel complementation, and supply chain integration. This acquisition is in line with the company's and shareholders' strategies and will be beneficial to the company's business development. And expand to achieve the company's "brand strategy, international strategy and capital strategy" three strategies.
In fact, the reporter of "Daily Economic News" found that Feile Audio, which was established in 1984, has continuously expanded overseas markets this year, and established subsidiaries and cooperation, including the French market, the Hungarian market and the Brazilian market. The acquisition of Osram's channel business is the ambition behind its strategy of accelerating internationalization.
In addition, on August 27, Dehao Run also disclosed that it intends to cooperate with state-level industrial funds to jointly acquire assets of a lighting enterprise outside China. It is estimated that the amount involved is between RMB 4 billion and RMB 6 billion. stage.
The industry believes that the assets of the overseas lighting companies that Dehao Runda is bidding for may be assets such as general lighting that Osram splits. However, on November 10, the company said that due to cross-border mergers and acquisitions, from the current progress, Dehao Runda estimates that it will take several months to reach a final agreement and is actively promoting business.
What is the domestic buyer chart?
The news that Osram splits the sale of assets has affected the hearts of Chinese buyers. The industry believes that the rising power of China's lighting companies is enhanced, and the international brands and sea-going channels attached to foreign-owned selling assets are exactly what domestic domestic companies are looking for.
As one of the most innovative lighting companies in the world, OSRAM has a pivotal position in the international light source market, but due to the price impact of Asian lighting companies, OSRAM hopes to gradually divest its lower-profit general lighting business and focus on LEDs. Components and special lighting business.
"From the perspective of the development of the entire lighting industry, including the lighting giants such as Philips and Osram, the advanced mature technology has firmly occupied the market share, and Chinese lighting companies cannot compete." Guo Xiu, Secretary General of Guangdong Lighting Association "Daily Economic News" reporter said. With the development of the past 30 years, the lighting rights of Chinese lighting enterprises have increased, the talent pool has increased, and outstanding entrepreneurs have emerged, striving to reduce costs and increase efficiency. With the advantages of cost, scale and price, overseas lighting giants have gradually adhered to Special lighting and other areas with higher thresholds.
And why are Chinese buyers rushing to buy the assets that Osram intends to give up?
“Chinese companies are competing to bid for Osram’s assets, and more are to look at overseas sales channels and related brand advantages. If they can use them for themselves, they can speed up the pace of Chinese companies going abroad.†Guangzhou Aladdin E-Commerce Co., Ltd. Liu Jun, the deputy general manager of the board of directors, told the reporter of the Daily Economic News.
Ding Jianhua, executive deputy general manager of Zhejiang Hehui Lighting Technology Co., Ltd. also said, “Chinese lighting companies have acquired the world-class brand Osram general lighting assets, which is conducive to enhancing the brand image of Chinese companies, and some technologies of OSRAM General Lighting are also relatively leading. Certain advantages, similar to the previous Geely Automobile acquisition of foreign brands Volvo."
Take Mulinsen as an example. Although it ranks among the top ten Chinese lighting companies in terms of its scale, it is known in the industry as a “price butcherâ€, which means that the company is on the low-end route. In order to continue to grow, it is urgent to acquire Osram-related assets, enhance its international brand image, cover the high-end market and achieve internationalization.
"For Chinese manufacturers located in Asia, rather than spending a lot of money in the European market to promote the foundation, it is better to directly acquire the Osram assets of the international brand, this is a once-in-a-lifetime opportunity." Ding Jianhua said.
Ding Jianhua said that because the focus of Chinese lighting companies is in China, the brand image can't keep up. "Actually, I earn a very weak processing profit. Without any brand premium, I can't stand up in the international market. Domestic low-cost competition is killing each other. After a good brand, you can go out and look for the blue ocean. However, for companies that take over, it is no small challenge to digest Osram-related assets.
“The sale of this asset is not the best, because Osram is a diversified international company. It is very difficult to integrate. The international enterprise involves all levels, including regional, product technology and personnel. Big, it is not easy to want to innovate."
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