Daimler Fukuda to Consider Establishing a Heavy Truck Joint Venture


The "Fukuda Daimler curve joint venture" plan that has entered the approval process for a year has been abandoned. On November 30, Beiqi Foton issued an announcement announcing the termination of the "Dick targeted increase plan," and the two parties will consider establishing a joint/heavy card joint venture. This is a brand new choice that Daimler has no choice but to negate the "curve joint venture". However, it is worth noting that according to the private preliminary agreement between the two parties, the Mercedes-Benz high-powered engine will lead to production in Beijing.

Curve joint venture abortion

Fukuda explained that since January of this year, “the overall economic environment of China, especially the stock market, has undergone major changes, and despite Beijing’s leadership and the efforts of both parties, it has not obtained government approval.” In this case, the curve Joint venture abortion.

According to industry analysts, the NDRC hopes that Daimler will not block the advanced technology too tightly, and that it can truly share the Chinese and Chinese companies. In addition, the Securities and Futures Commission and other departments believe that the purchase price of 2.75 yuan per share is too low, causing controversy over the loss of state-owned assets.

Previously, Daimler hoped to directly invest in Futian instead of establishing a joint venture with Foton. According to the agreement in November last year, Foton issued additional shares to Daimler. Daimler owns 24% of the shares after the increase. Since Futian's stock price was not high at the time, the price was only 2.75 yuan per share, and Daimler only had to pay about 818 million yuan. The secret of this issuance is that Daimler’s 24% share after the additional issuance is below 25% (more than or equal to 25% as a Sino-foreign equity joint venture), which is conducive to circumvent complicated approval procedures.

The low-cost investment in Futian and the method of a curve joint venture have caused the relevant authorities to doubt the sincerity of Daimler. Not only that, but unfortunately, at that time, the Development and Reform Commission had taken more than 20% of the auto industry's shares as joint ventures and had to participate in the approval process. Therefore, government-level approvals dragged on. 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 “daily placement of Dick” means that Daimler could not obtain the opportunity to take shares in Fukuda through the A shares. The loss of this opportunity is, for Daimler, a significant increase in joint venture costs.

Giving up was obviously a dauntless move by Daimler. On October 23, when faced with the reporter's question on whether or not to consider changing the cooperation method, Daimler Chairman Cai Che insisted that, “Fukuda Project, we still hope to complete the purchase of some shares, and we did not increase our holdings. Plan.” There are only 7 days remaining on the second delivery day after the delay.

Full cooperation and cooperation spread out

After the "curve joint venture" fell, Daimler had to fully cooperate with Futian.

According to the signing of the "Cooperation (Unification) Agreement" on November 30, the two parties will consider establishing a joint/heavy truck joint venture. According to the disclosure of Fukuda senior officials, Daimler has reached a consensus with Futian and the relevant authorities in Beijing. Daimler has changed to a full-fledged joint venture with Futian under the national automobile industry policy. That is, the two sides established a 50:50 stake in the company. The peer-to-peer joint venture company has introduced the production of Mercedes-Benz brand medium- and heavy-duty trucks.

The reporter received the news that Futian will use the production line and plant of Auman, an autonomous heavy-duty truck, to pay for more than 1 billion yuan. As a reciprocal investment, Daimler will invest more than 1 billion yuan in real money. After the full-scale joint venture, the price that Daimler needs to pay is definitely higher than the number of private placements.

According to Lin Muhong, an auto analyst at Industrial Securities, the previous method was to spend 800 million yuan to obtain 1/4 of the entire equity of Foton. Today's method is to spend 1 billion yuan in 1/2 equity of the joint venture company. The two methods are better than others.

It is reported that if the production of Mercedes-Benz heavy trucks, Foton Motor needs to carry out the transformation of Huairou's Auman heavy-duty truck plant and rebuild the production line for Mercedes-Benz heavy trucks. However, the Auman model will not disappear and will exist as a joint venture company's own brand. At present, the two sides have not yet signed a formal joint venture agreement. On December 17, the Futian Extraordinary General Assembly will vote on this.

It is worth noting that, according to the results of the negotiations between the two parties, Mercedes-Benz 12-liter high-power heavy-duty truck engines will be introduced into future joint ventures. This will be the first time that Mercedes-Benz has exported its engine technology to China. The senior management of BAIC said with emotion that Futian and Cummins will jointly produce the world's leading light truck engines and will produce an internationally leading heavy truck engine together with Mercedes-Benz. The competitiveness will be greatly improved.

Raise 1.2 billion to continue to advance

After Daimler withdrew from the ranks of private placement, Futian will re-direct and raise 1.2 billion yuan.

It is reported that Foton has launched a new plan for private placement, that is, the number of private placements to no more than 10 specific institutions, the number of 100 million shares to 111.2 million shares, of which BAIC intends to subscribe for 40 million shares in cash; other specific investors in cash Subscription does not exceed 71.2 million shares. The issue price is not lower than 9.88 yuan/share.

Compared with the previous plan, the total amount of funds raised is not much different. The original plan is to raise funds of 1.172 billion yuan, and the amount of funds raised for the new plan does not exceed 1.232 billion yuan. However, the issuance price has greatly increased.

Fu Tian Dong Secretary Office said that the increase in the price of reference is the stock price of the last 20 trading days, so nearly three times higher than the increase in November last year.

It is reported that the funds raised will be invested in the registered capital of Foton Cummins Engine Co., Beijing Bus Co., Ltd. and Oumac Automotive Factory. The old program of the Auman heavy-duty truck body welding production line technological transformation project is not included in this investment. Industry insiders stated that Auman Heavy-duty truck body welding production lines are already in the joint venture company in the future, so after the joint venture company is established, it will be transformed.


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