Chongqing Textile annexes German auto parts company

On the big stage of the international market, Chongqing state-owned enterprises re-appeared. Yesterday, the city's SASAC released a news report that Germany's Saargummi, a well-known German company that supports automakers such as Volkswagen and Mercedes-Benz, has been successfully used by Chongqing textile companies for more than 68 million euros. This is the first case of Chinese companies acquiring German auto parts supply companies, and it is also China's largest M&A investment project in Germany. As a result, China Textile Group became the first multinational operating company in the city across Europe, Asia and the United States.

Auto parts giants filed for bankruptcy due to financial crisis Sagami Group is a multinational group located in the Wadden-Buschfield area of ​​Saarland, Germany. It has 12 factories in 9 countries including Germany, Brazil, Spain, and the United States. It is a global leader in automobiles. The seal supplier, whose production technology ranks 3rd in the world, has established a long-term stable business relationship with the Volkswagen, BMW, Mercedes-Benz, Ford and other leading automotive OEMs and entered its global procurement system. Its 2010 turnover was 3.6 billion euros. In November last year, the company filed for bankruptcy protection due to the financial crisis and other reasons.

Chongqing Textile Co., Ltd. spent 68 million Euros to take over. "At the end of last year, after learning about this information, we began to organize a special negotiating team to start contact with Sa Guami." Tang Chunhui, director of the office of the Textile Group, said that after several negotiations, China Textile Group ultimately invested more than 68 million euros in the acquisition of Sagami Group’s equity, debt and assets of approximately 380 million euros.

On May 6th this year, China Textile Group officially completed all legal proceedings for the acquisition of Sagami Group. On the afternoon of June 6, local time, the project completed a formal delivery. From June 7, Sagami's global production base, marketing network, 81 international patents, and six world-leading technologies will all be controlled by Chongqing Textile. Chongqing Textile officially became an important member of the international automotive seal industry. The first cross-border business enterprise across Europe, Asia and the United States in Chongqing.

This acquisition set a number of firsts. Tang Chunhui said that this move is the first time that Chinese companies have acquired German auto parts supply companies and is currently the largest M&A investment project by Chinese companies to German companies. At the same time, it is the first multinational group of state-owned enterprises in Chongqing. In addition, this acquisition also involves equity, assets and claims, and has a complex structure.

Improving the global influence of “ChongQing Made” why the Saguami Group was included in the bag, Tang Chunhui revealed that this is mainly due to the optimism of the production technology and global influence that Sagagu had in his hands. The acquisition will play an important role in expanding the market share of Chongqing Textile Group in Europe and North America and entering the global market. It will also enhance the Group’s and Chongqing’s right to speak in the automotive industry. It is reported that, after the completion of the acquisition, the Sagami project will contribute more than 3 billion yuan in sales to the China Textile Group each year.

It is reported that after the completion of the acquisition, China Textile and Lighting Group will consider the consolidation of Sa Guami's business, and will consider the synergy with the development of the domestic auto industry. According to German local media reports, some of Sa Guami's jobs will be retained. Chongqing Light Textile Group will also invest in new equipment and R&D in the future.

News Background Both parties began to cooperate with multi-enterprise competition 15 years ago. Light Textile Laughter The final "acquisition of Sa Guami, the process is very tortuous." Tang Chung-hui said that after two rounds of negotiations, the two sides finally held hands. It is reported that Sagitky’s strong strength and leading advanced technology in the same industry have led to the participation of 14 companies in M&A bids, resulting in the acquisition of bids by three companies, Chongqing Textile Group, a Polish company and a Indian company.

Where is the secret of the final win in textiles? The textile industry believes that the understanding of each other is one of the foundations for the success of this acquisition. According to statistics, the cooperation between Chongqing Textile Group and Sa Guami can be traced back to 15 years ago. The reporter learned from the China Textile Group that in 2006, Jiaxuan, a subsidiary of the China Textile Group, and Sa Guami of Germany established a technology and market cooperation platform to jointly develop Ford and General Products projects. In 2007, the two parties began in-depth joint-venture and cooperation negotiations and reached a consensus: 50 million yuan in joint ventures, each with 50% shares, to build a joint venture with an international manufacturing standard capable of supporting 1 million cars, to enter China and Asia In the high-end car market. On July 25, 2009, Chongqing Jiaxuan Sagu Mi Rubber Seal Co., Ltd. was formally established. In addition, thanks to the strong support of the municipal department and the help of the world-class intermediary agencies hired by the Group, China Textile Group finally stood out in the fierce competition.