In China is one of the largest chemical industry group co., LTD. (hereinafter referred to as the "China chemical") to buy two years later, one of the largest tyre manufacturers in the world of pirelli on October 4, listed on the stock exchange of returning to milan.
This is the largest and second largest IPO in European capital markets this year. Italy's local financial press has defined pirelli's return as a "premium return".
China chemical industry specialization "split" to make pirelli "one and two"
Two years ago, in 2015, the 145-year history of pirelli, which was listed in 1922, was delisted from the milan stock exchange for the acquisition of chemchina.
After the pirelli overseas listed again, the Chinese chemical industry of pirelli is still in a relatively holding position, having to pirelli's actual control, in the board of 15 members, there are eight chemical from China.
Although the current listing process is two years ahead of schedule for the resale of pirelli's planned relaunch in 2019, the market believes that pirelli is ready.
Pirelli was founded in 1872 and is one of the world's largest tyre manufacturers with operations in more than 160 countries.
A sole tyre supplier for F1, pirelli in high-end tire market occupy the leading position for a long time, is lamborghini, porsche, ferrari, maserati, mercedes-benz, BMW, jaguar, land rover, Volvo, audi and other high-end and super luxury car tire certification "original".
Pirelli has a wide spectrum of products, except for passenger cars, and industrial tyres such as tyres and agricultural tyres.
The product is divided into different market segments with different customers, different resources and different business models. In by the Chinese chemical industry after the acquisition, therefore, according to the China national chemical original passenger tires and industrial differentiated guidance as to the business philosophy and business model, in January 2016, pirelli will its industrial tire and passenger tire business spin-off, and gives two different business objectives.
In the field of the use of tyres, as the market capacity of the world's high-end tires continues to expand, pirelli focuses on strengthening high-end positioning to maximize value.
According to market analysis, the number of luxury cars in the world will reach 154 million by 2020, 93% of which will be concentrated in Europe, Asia Pacific and North America. The number of supporting and replacement tyres is 278 million, of which 95 percent are in Europe, Asia Pacific and North America. In particular, the market for tyres with a diameter of more than 19 inches is growing three times faster than the standard variety tire market, and in this area, pirelli has been in short supply.
Pirelli's chief executive, tronchetti, told Reuters the average sales growth target for the next three years would be 9 percent.
Pirelli has always been a leader in the industry, especially in the lead-up to the 19-inch wheels of high-end cars, according to a dealer familiar with the market for high-end tires. He believes that if recombinant with China's tyre sector, pirelli's capacity could be expanded, it would take time to upgrade China's production line.
In the industrial tyre market, pirelli will rely on the trend of China's manufacturing upgrading to gain new momentum, while chemchina will build a new global industrial tyre giant with synergies.
Before the acquisition of pirelli, chemchina has owned shares of fengshen, shuangxi tire, yellow sea tire, guilin tire, etc. This is a natural combination of pirelli's industrial fetal plate, and the integration of China's chemical industry as a whole has been implemented in two steps.
The first step is to preliminary restructuring, in October 2016 by the acquisition of shares by Aeolus pirelli industrial tire (PTG) 10% stake and China chemical industry's double happiness tires and yellow sea tires, also sell shares fengshen subordinate passenger tire assets 80% stake to pirelli passenger tire business. To 2017, the Chinese chemical industry completed step 2 assets reorganization scheme comparison and optimization, steadily push forward the pirelli industrial tire (PTG) injection of fengshen shares, the remaining 90% stockholder fully completed by the end of the Chinese chemical industry assets reorganization of global industrial tyres.
In April this year, fengshen shares have been issued announcement, formally announced plans to buy pirelli industrial tire (PTG) 90% equity and other related chemical group company's China industrial assets, in order to realize the comprehensive and deep integration.
After the completion of the integration, China chemical industry's industrial tire management platform will not only expand dramatically, but also increase the profitability. New positioning and fully restore "fengshen - pirelli" will become the world's first focus on passenger car tyres, engineering births and agricultural tire production tire giants, total to more than 20 million sets, become the world's fourth largest industrial tire manufacturers.
In terms of capacity layout, the new "fengshen - pirelli" has achieved global production capacity distribution, which has increased China's flexibility to deal with international trade barriers.
Tire industry insiders pointed out that card passenger tire belongs to consumable industry, the brand value of profit contribution than passenger tire, so in the field of industrial tyres, pirelli technology value is highlighted.
It is understood that pirelli is gradually importing more than 20 of the world's top industrial tire technologies into the wind, and both sides are committed to the development and promotion of new products. With the advantage of pirelli's two r&d centers in Brazil and Italy, the establishment of a global industrial tyre r&d center in China is also on the agenda.
As a result, China's chemical industry in the field of tyre will have domestic and overseas two clear strategy and the internationalization of business focus, reasonable layout, efficient coordination tire business platform and capital operation platform.
There are industry analysts believe that China's chemical industry tire plate it in a cage bird room in accordance with structural reforms proposed by the central supply side direction, through the international cooperation capacity, using the quality promotion and drive, China's domestic capacity upgrading, in turn, radiation global market, coupled with the "area" under the initiative, as the first industry investment fund of the silk road project, "made in China 2025" innovation, quality, efficiency, two fusion and green development of four indicators, both in the project, this is typical of policy and market grafting of the project.
The Italian media also said that after the re-launch, "pirelli's new shareholders will benefit, with less than two years of continuous effort, pirelli's leaner and more dynamic."
The international m&a of chemchina has formed a "closed loop"
According to preliminary estimates, the value of the original investment from China's chemical and silk road funds to pirelli has doubled.
Chemchina has completed 10 international mergers and acquisitions and completed its biggest overseas acquisition in 2017, with the acquisition of Swiss syngenta. In these mergers and acquisitions, the path of m&a integration strategy of "forward acquisition - reverse integration - reorganization" is very clear.
First notice of finance and economics, similar to the operation skill of pirelli, China national chemical company after the acquisition of animal nutrition additive French Andy Sue industry into China, and will Andy Sue in a-share listed, implement "actual part under the control of exit".
With pirelli simultaneously with another capital operation has been completed, China's chemical industry by the merger of the world's largest generic pesticide Ann said Israel company reverse integration of domestic pesticides plate, to use Ann wheat into domestic sand swell of listed company. The German Klaus maffei, acquired last year by chemchina, is a "Rolls-Royce" in the field of rubber and plastic machinery, and has also been reorganized by reverse-integrating China's chemical rubber and plastic machinery.
Ren jianxin, China's chairman of chemical engineering, said of the international merger and acquisition that there was a "three-letter book", namely "buy, manage, do well, get in, out, sell high".
This "positive acquisition, backward integration, restructuring listed" merger integration strategy of path clear, according to the rules of marketization operation, synchronization to realize the value of state-owned assets, the transformation and upgrading of domestic capacity, capital structure optimization goal, for the Chinese enterprises "going out", participate in international competition in the market, improve the level of international operation provides a good model.
Even the Chinese chemical takeover of syngenta, China's largest outbound merger and acquisition project to date, is likely to continue to follow the "reverse merger" of chemchina's "reverse merger".
Chemchina has disclosed publicly that syngenta will soon return to the stock market, and that the capital operation of China's largest m&a deal will continue to be watched.