Pinzun International Centre.

Tower A.

Li Changqing, who had beaten the front station in advance, had been waiting for the big boss downstairs.

Carrefour headquarters was very interested in Li Changqing's acquisition plan.

Global President Peng Bohua personally rushed to the magic capital to meet with Chen Dongcheng to discuss specific acquisitions.

The Mercedes convoy came from a distance, and the Rolls-Royce in the middle was still very conspicuous.

Li Changqing waited for the car to stop, stepped forward quickly, and pulled the car door.

"Boss, Carrefour's Bloom has arrived. ”

"Let's go, don't keep people waiting. ”

Chen Dongcheng lowered his head and picked up the folds of his clothes, and walked forward with his head held high.

Li Changqing and other members of the think tank followed behind the boss.

More than a dozen people dressed up in suits and leather shoes walked into the building together, which made many white-collar workers who came and went frequently sideways.

Chen Dongcheng wears sunglasses, but he doesn't have to worry about being recognized.

However, the posture of walking has a domineering spirit that cannot be approached.

The group of them just filled an elevator.

Pang Zhengyang and a group of bodyguards surrounded Chen Dongcheng in the middle, looking around vigilantly.

"Ding. ”

The elevator sounded, and the 18th floor arrived.

Carrefour Huaxia headquarters is located on this floor.

Walking out of the elevator, I saw the Carrefour logo in a few steps.

The girl at the front desk saw so many people, and she came over calmly to intercept them.

"Hello, do you have an appointment?"

Li Changqing came forward and replied: "We are from Donghua Fund, and we have made an appointment with Mr. Peng. ”

"Oh, yes, please come with me. ”

The secretary immediately remembered what the upper echelons had told him, and his demeanor was full marks.

With a white tooth smile, he bowed down to lead the way.

In the conference room, Carrefour's executives did not look good.

Especially a few executives in the original Huaxia District were even more worried.

Since 2009, Carrefour's performance in China has begun to decline, and it has fallen by about 10% per year.

Until now, Carrefour's performance has shown no signs of improving.

It would be strange if the Europeans didn't have the idea of selling the business in China.

In 2013, Carrefour was determined to sell its Huaxia business.

As a result, the asking price was too high, and no one cheered, making a joke.

The online channel was opened too late, and the damage to Carrefour can be said to be fatal.

At this time, the online channels have already decided the rankings, and Carrefour has just begun to explore.

At this rate, it is strange not to be eliminated by the times.

Of course, the French executives of Carrefour can't be blamed entirely.

Their original offline channels in Europe are already very convenient.

Several other competitors have not been eager to promote online channels, which has kept them hesitant.

When it comes to mobile payment, Huaxia has never served anyone.

Erma has made the education of the Chinese people clear.

From the eighty-year-old man to the children of several years old, they all know to scan the code to pay, send red envelopes and grab red envelopes.

Therefore, the rapid development of China's online channels is quite unsuitable for Carrefour's French executives.

Coupled with the speed of financing on these online platforms, they are dumbfounded, and they don't even have the confidence to compete with others to burn money.

"Knock knock. ”

The girl at the front desk knocked on the door and walked in and said, "The people from Donghua Fund have arrived." ”

Peng Bohua was the first to get up, followed by Tang Jiannian, president of Huaxia, and other executives also got up.

Chen Dongcheng took off his sunglasses, nodded with a smile and everyone one after another, and took the people on his side to the seats.

Bloomer is the global president of Carrefour, and his opinion on whether this deal will be successful is more important.

Mr. Tang, the president of China, is more concerned about the deal than Bloomberg.

Once the deal is successful, Chen's opinion of him will be crucial.

For this cooperation, Carrefour headquarters is very sincere.

They are eager to divest their business in Huaxia to make the group's overall financial report look better and boost the confidence of investors.

Carrefour's market value has deteriorated in recent years, largely because of the sluggish performance in Huaxia and several other regions.

"Mr. Chen, we have discussed with Mr. Li many times before, and in terms of price, our bottom line is 1.5 billion US dollars. ”

Peng Bohua will not go into battle in person, and Tang Jiannian, the president of the Huaxia region, is responsible for bargaining with Chen Dongcheng and them.

Li Changqing retorted unceremoniously: "Mr. Tang can't help but think too simply, I have a copy of information in my hand."

Since 09, Carrefour's performance has declined year after year, and it has not improved.

Carrefour's influence in China is declining.

If your group still waits with that unrealistic hope, I think the outcome will not be what you expected. ”

Tang Jianian secretly glanced at Peng Bohua and found that his boss did not look angry, so he breathed a sigh of relief.

After all, the decline of Carrefour Huaxia is so serious, and he, the president of Huaxia District, is the most responsible.

Tang Jianian asked, "Then I don't know how much you plan to offer?"

Li Changqing said with a smile: "6 billion, this is the highest offer given in combination with Carrefour's debt." ”

"It's impossible, we've rejected this offer before, and I don't think there's any sincerity in your offer. ”

Tang Jianian shook his head and refused without hesitation.

6 billion wants to buy the business of Carrefour Huaxia District, what is the difference between that and dreaming?

Li Changqing's smile remained unchanged: "Mr. Tang doesn't need to refuse in a hurry, I have sufficient reasons to prove that our offer is reasonable." ”

Tang Jianian sneered: "Okay, I want to hear what Mr. Li has to say." ”

After Li Changqing sorted out his thoughts, he said: "We think that Carrefour's asset quality is not very good, Mr. Tang does not need to be in a hurry to deny this, I will carefully explain it slowly for you." ”

Tang Jianian's lips moved, and he continued to sneer and listen.

"First of all, Carrefour's total assets are 11.5 billion yuan, but the total liabilities are as high as 13.8 billion yuan, which is insolvent. ”

"You're undercounting the value of our free property. ”

Tang Jianian pouted: "Moreover, if it weren't for this, we wouldn't have chosen to sell, this is not the reason why your offer is so low." ”

Li Changqing smiled and nodded: "Of course, I will analyze the reason why we offer so much to Mr. Peng and Mr. Tang from three o'clock."

First, Carrefour's stores in China lack sufficient coverage density.

Not to mention the small format convenience stores, there are only 24, which is very few.

In the stage of running the model, this asset is not worth much.

The main attraction of Carrefour's Huaxia business is still in hypermarkets.

51 cities, 210 stores.

Spread out in each city, it is about 4.1 stores.

The density is not too high, and it cannot achieve full coverage of a city.

I think Mr. Tang and Mr. Peng should know that only when the retail industry forms a sufficient regional coverage density will it have greater value and competitiveness.

Second, Carrefour's six major warehousing and distribution centers were launched and built after 2015.

Carrefour's warehousing also adopts an asset-light model of leasing warehouses and leasing equipment in cooperation with GLP.

Generally speaking, even if the supermarket distribution center is completed, it will take about 2 years to run in.

This is also one of the biggest problems of your company in China, and it is not doing very well in the supply chain.

If the supply chain is not strong, you will not be able to beat other regional retailers locally.

Third, in terms of the efficiency of a single store, Carrefour's performance has been declining.

The closest competitor to Carrefour is Sun Art Retail.

Both of you are operating in a single hypermarket format, and both are operating in a large-scale "shopping street" leasing area.

Carrefour's annual ping effect per square meter is about 7,500 yuan.

Sun Art's annual ping effect per square meter is about 7,700 yuan.

Just looking at the ping effect figures, you are not much different from Sun Art Retail.

But in fact, if you exclude some factors, your actual performance is very different from that of Sun Art Retail.

On the one hand, Sun Art Retail's store area is larger, with an average of about 26,800 square meters per store.

Carrefour's hypermarkets in China have an average store area of about 19,000 square meters.

Therefore, Sun Art Retail has achieved higher ping efficiency in the case of a larger leased area. ”

Li Changqing concluded: "From these three points alone, the disadvantages of Carrefour are clear enough, and I think it is wisest for Carrefour Group to stop losses in time." ”

Peng Boqiang, who originally looked flat, glanced at Tang Jiannian.

"We all admit these problems, but I think Mr. Li should know that you are not the only one who is interested in Carrefour's Huaxia business, so you are not afraid that we will adopt the bidding model?"

Li Changqing smiled and shook his head: "Our acquisition of Carrefour Huaxia is from the perspective of business integration.

Carrefour Huaxia's subsidiary's negative equity, loss-making operation, and the complex shareholding structure of regional stores all have very high requirements for integration capabilities.

One carelessness can create a financial black hole.

There may be companies that dare to bid, but the price must not be as high as ours. ”

Peng Boqiang is naturally well aware of Carrefour China's situation.

In order to seize the market, Carrefour raised funds to expand stores in stores in first- and second-tier cities with local small and medium-sized partners.

To put it bluntly, it was to cooperate with some people who were relatively wealthy at the time and be responsible for contributing money.

Carrefour is responsible for the brand, a small amount of funds, together to open Carrefour's stores.

The number of such small owners is quite large, and Carrefour has a total of 210 stores.

There are almost 25 stores with annual sales exceeding 200 million yuan, and half of the shares are in the hands of those cooperative shareholders.

Not to mention Carrefour's development ideas, it is the biggest problem.

At that time, they concentrated in first- and second-tier cities to open stores, which was also related to the environment at that time.

They are among the first foreign retailers to enter China.

So at that time, Carrefour initially got very little rent.

However, due to the advancement of urbanization in China, these Carrefour stores have become the core business district of the city.

There is a lot of upward pressure on rents on store properties.

Moreover, according to the tenancy agreement of about 15-20 years for hypermarket stores.

The properties of these stores will recently usher in a lease renewal period.

This is also the reason why Carrefour headquarters is eager to divest its business in Huaxia.

If you change the lease, you don't know how much the loss will expand.

Maybe even in a few years, Carrefour's Huaxia business will have to be transferred for one yuan, as long as someone is willing to take on the debt.

For Carrefour headquarters, the sooner the business in China is divested, the less they will lose money.

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