The acquisition of ZF's CVT business unit has also earned the Chunghwa Group an international reputation that even DSI's headquarters in Australia has heard of.

However, this is based on superficial knowledge, not real understanding, at least for the majority shareholder of DSI, the Chinese are only recycling the assets abandoned by ZF.

For a company like DSI with core AT technology, it is not a target that Chunghwa Group can covet.

Therefore, when they learned that the Chinese were interested in acquiring DSI, their first reaction was to refuse.

"I highly recommend that you meet and talk to the Chinese, because now everyone is talking about the rise of China, they are very powerful sellers." ”

As a lobbyist, the head of the local public relations company said to Di Lan, the actual controller of DSI.

"While we are fiddling with cars, the Chinese are still playing with mud, and they are not suitable for acquisitions. DSI is only experiencing temporary difficulties and is not going to be sold at a critical juncture. Ford and Ssangyong are still under contract, especially Ssangyong has also added some orders, and now is not a good time to sell. ”

Chinese capital is just emerging in the international market, and many Westerners are still looking at the big Eastern countries that are very mysterious to them with old eyes.

"Of course, they are willing to buy DSI's advanced AT transmission, which I certainly welcome, after all, our high-torque transmission technology for SUVs is unique. In board discussions, we agreed that now is not the best time to sell.

Moreover, we receive a large amount of financial subsidies from the Australian government every year, and the government will never allow us to sell our enterprises to Chinese. ”

Chinese car brands have not proven themselves internationally, so it is unacceptable for the arrogant majority shareholder of DSI to make a reverse takeover of someone who is far behind them. Coupled with Australia's high subsidy support policy for the automobile industry, we do not want DSI to fall into the hands of other countries.

In line with the principle of selling his art and not selling his body, Han Hao, as the richest man in China and a celebrity in the business community, the major shareholder of DSI still agreed to the meeting between the two parties.

DSI hopes to sell its AT engines to Chinese, but it will never sell its enterprises to Chinese, which is a very clear principle.

When I came to DSI, I saw their factory that produces 180,000 AT transmissions, which is more like a park than the hot Chunghwa Group factory.

Western countries have had to go through a wave of deindustrialization under the flow of capital, and factories have been relocated to low-cost countries like China.

If it weren't for the Australian government's use of automobiles as a benchmark for the country's new industry, it intends to use state subsidies to support the creation of an automobile export base, and use tax conditions to attract multinational auto giants to settle down and build factories, so that the automobile industry system can be relatively preserved in the local area.

However, due to the high labor cost and relatively small market, the Australian government's good intentions to build the automobile industry into an advantageous industry and establish an export base seem to be drifting away.

The United States, Europe, China, Japan and South Korea have their own car factories, and with policy protection, the cars produced by high-cost factories like Australia are not competitive.

Australia has a population of just over 20 million, and compared with North America, Europe, and China, which have a population of hundreds of millions, it is a finger-like existence, and the local cannot digest and support consumption to reduce costs, and it is a strange thing that the automotive industry can develop. A clear example of this is the fact that Japanese and Korean brands produce locally to compete in the local market even after high tariffs.

Therefore, the Australian government's use of huge sums of money to subsidize the auto industry has caused strong dissatisfaction among the public, especially the opposition parties who are propaganda that once they come to power, they will actively promote the abolition of such a thankless policy as car subsidies.

"If such a factory is born in China, it will definitely be able to mix well. It's a pity that it is in Australia and can only be reduced to a supporting role on the international stage. ”

Han Hao's consideration of the problem is becoming more and more international, and the slow decline of DSI is a predictable outcome.

Internationally, OEMs have their own automatic transmission supporting enterprises to cooperate, DSI is outside the mainstream, and even Chinese auto companies do not consider using its products, which is enough to show that its living space is constantly being squeezed.

"The Australian government is working hard, but the hollowing out of industry is not something that a country with a small population can stop. Although GM, Ford, Toyota, Nissan and other companies have factories in the local area, judging from their financial reports, the situation of the factories is very bad, and losses are the norm.

If it weren't for the Australian government's subsidy, it is estimated that these international giants would have closed their factories and replaced them with import strategies. ”

As an expert in the automotive industry, Zhao Quanfu, a colleague, is naturally familiar with international trends.

In the conference room of the DSI office building, Han Hao and others met with Di Lan, the representative of the other party's major shareholder.

Thanks to the Internet, Dylan can search for reports about Han Hao through the Internet. From Forbes magazine's list of the richest people in Chinese mainland, Han Hao ranks first, with a net worth of more than 10 billion US dollars.

"What a lucky young man, with such a humble car, can send himself to the throne of the richest man! What is going on in this land of China that so many billionaires are created on a regular basis. ”

After Dilan took a cursory look at Han Ha's information, he muttered to himself.

If he didn't have a deep understanding of Chinese before, now the words of his net worth of tens of billions of dollars deeply reminded him, and he began to take Han Hao's visit seriously.

"On this visit, we want to see if we can find opportunities for cooperation between the two sides......

Han Hao determined the upper, middle and lower three-tier strategy for his trip, the best strategy is of course to reach an agreement on the acquisition of DSI at a reasonable price, the middle strategy is to establish a technical cooperation relationship between the two parties to jointly develop AT and build a factory in China, and the next strategy is to poach some technical talents.

Digging people will definitely not be put on the scene to talk about, and mergers and acquisitions will not be said first, Han Hao mainly put forward the middle strategy.

First, it is easier to accept, and second, if the two parties reach a cooperation intention, it will be more convenient for reverse takeovers in the future.

"A joint venture can be considered, but the main components will have to be produced locally in Australia, and then they will be set up in China. As for joint R&D, we believe that the conditions are not ripe for the time being, and the mature products of 4AT alone can already meet the needs of the Chinese market.

In fact, we can change the way, that is, you directly purchase our products for SUVs, as a sincerity we can sell advanced products such as 6AT to China in the future, and we will give the greatest discount in terms of price. ”

Di Lan understood Han Hao's plan, and he quietly rejected the plan for technology leakage, and also proposed the method he most wanted to achieve to open up sales.

Basically, both sides chose the most beneficial way for themselves in this round, Han Hao hopes to introduce DSI into the breakthrough AT, while Dylan hopes that the Zhonghua Group will help digest the production capacity, and even does not hesitate to throw the bait to let the Chinese act as guinea pigs for 6AT.

In the case that 4AT is still the mainstream of the market, 6AT represents the next round of new technology and has strong attraction.

As the conversation between the two sides deepened, sensitive topics such as the acquisition of DSI also began to emerge.

"We have a mature 4AT, and we have also completed the research and development of 6AT products, and we have also laid out CVT and DCT, so it is no exaggeration to say that DSI is a mainstream transmission company in the world.

For such a promising company, I believe that the board of directors will not consider the offer of less than $2.5 billion. ”

Dylan quoted a high price that he thought was impossible, and they took over DSI for less than $400 million, and now they have increased their price to Chinese by six times.

According to the market valuation, the current DSI valuation is between 6 and 1 billion US dollars, and the main valuable things are the intellectual property rights of 4AT and 6AT, the factory of 180,000 transmissions, and a large group of R&D talents.

If the Chinese, who seem to have deep pockets, agree to the price, should they get rid of it at that time?

Di Lan was a little entangled in his heart, the technology in his hands should be worth thousands of gold to the Chinese, but it is unknown how much the other party is willing to pay to obtain it.

"This price is much higher than the market expectation, and I have a third-party appraisal of the DSI price here, which fluctuates around $650 million, and I think this price can be used as a reference for you.

There is still a long way to go, and the door is always open for negotiations between us. I admit that your AT transmission has some appeal, but we in Chung Hwa Group now have CVT technology, and it doesn't have to be an AT.

Of course, in the end, it is the sincerity of each other, and if we can agree on the price, then we are willing to help DSI out of this predicament. In the future, we will be able to absorb all 180,000 units of AT production capacity by one company, which will be achieved in the next three years. ”

With experience in foreign mergers and acquisitions, Han Hao certainly won't be stupid to be the boss. DSI is worth a lot of money, and it is impossible for the lion to open his mouth widely.

"I agree with you, the door is always open. In fact, we are not in a hurry to sell to the outside world to find a buyer, and 2.5 billion US dollars is not much overestimated for the success of R&D from scratch to 6AT. You must know that often a model, such as Focus and Golf, costs no less than $2 billion to replace it.

The automotive industry is a field with large input and output, and sometimes the temporary loss is for better development in the future. As we all know, AT technology has been recognized as the face of the next generation of automatic transmissions, and CVTs and DCTs are likely to be phased out.

When the time comes, if you go back and ask for help from AT, it may not be the price!"

The reason why Dilan's confidence in holding DSI has increased greatly is that he sees the future development prospects of the industry.

The acquisition of ZF CVT cost 520 million, so the price of DSI's AT in Han Hao's heart is 8-1 billion US dollars, which can be accepted as the overall 100% acquisition price. However, the other party's major shareholder is not willing to sell, and still wants to sell at the price, and it is estimated that this transaction cannot be reached for the time being.

It seems that the most likely strategy now is to start recruiting technicians who have left DSI to help develop their own 4AT products.

"Let Lao Xu take action, we can also give the conditions that Chery can give, as long as he thinks it is useful for the development of 4AT talents, they can be signed. ”

After leaving the DSI headquarters building, Han Hao commanded.