Chapter 55 $40 million to buy Rolls-Royce Motor Cars

"Do you know, Mr. Chairman, Reitzler has been convincing us for months that the acquisition of Rolls-Royce is good for us.

As you may have heard from the media coverage, as you have heard, we have discussed this acquisition in depth.

But I don't think it's a good deal, I happened to be in London this month for a government meeting, but I only saw 2 Rolls-Royce cars in front of the House of Lords, and other cars of other brands were parked outside the House of Lords.

So I was curious to ask people about it, and then I found out that only movie stars, owners of red light districts or elderly aristocrats buy Rolls-Royce in the UK, and the brand is no longer valuable. Doopfield told the chairman of BMW AG and other shareholders at a board meeting.

As soon as his words came out, he immediately dispelled the idea of BMW buying Rolls-Royce. As a result, there is only one target left for their acquisition, Rover, which owns the two brands of Land Rover off-road vehicles and mini.

However, at that time, BMW only wanted to buy the Land Rover and Mini brands of Rover Motors, and did not want to buy the entire company, so the chairman sent Reitzler to London again in 1993 to discuss the acquisition, and the two of them took over before Jia Lei intervened.

"Rover is a really bad car company, we just want to buy Land Rover and Mini, and buying Rover Cars as a whole is not in our plans. Reitzler said to British Airways.

But British Airways turned down BMW's takeover, and the British didn't want to let the Germans buy their brand so easily.

Because Rover, Land Rover, Mini, Bentley and Rolls-Royce are already the last car brands left in the hands of the British, the proud British do not want to sell them to foreigners, and it just so happened that Jia Lei and Little Jews came to the door.

"Do you two want to buy Rover Motors too?" said the British Airways man in surprise.

"Yes, we want to buy it!" replied the little Jew, and Jia Lei nodded slightly.

Jia Lei knew that he was too young and would leave the other party with an unreliable feeling, so he planned to talk less in this contact.

"Have you really thought it through? It's not easy to buy such a big car company, it costs a lot of money. The British Airways guy asked.

"Of course we know this, and you can rest assured that we have enough money to acquire your company. The little Jew replied.

"However, the acquisition of the company is not only a matter of money, but also involves the retention of workers, factory equipment and various aspects of patented technology in the acquisition process. Said the British Airways guys.

"I know what you're worried about, and I'm afraid the person I wanted to introduce us to meet with has already told you. My friend is from the Victor family. The Victor family is a well-known multinational company in the world, and it is absolutely no problem in terms of strength!" Jia Lei said confidently.

"Yes, that's why we're going to get in touch with you, after all, Victor Group is a good buyer. British Airways nodded.

"Now that you've recognized our strength, let's talk about the specifics of the acquisition, shall we?" said the little Jew.

"We are very interested in your company's two brands, Land Rover and Mini, so we would like to know your company's quotation for these two brands. Jia Lei asked.

"I'm sorry, but our board of directors has made it clear that we will never sell these two brands separately, and if you want to buy these two brands, you will have to buy the entire Rover Motors Company.

In fact, BMW has been approaching us recently, and they are aiming for these two brands like you, but our board of directors has rejected them.

In total, there are more than 33,000 workers at Louvre, and if we sell the only two profitable brands, all 30,000 workers will be unemployed.

Our company and the UK government can't let this happen, that's our bottom line!" said the British Airways guy.

"But as far as I know, the workers of Rover Motors are not very efficient and the machines are aging, which is probably the biggest reason why you sold Rover Motors, right?

If you want us to take over all these workers, I'm afraid it's a big burden for us, right?" Jia Lei knocked on the table and said, he was considering whether it was worth it.

"Yes, we also know that it is unfair to you to sell it in such a package, but what do we have to do for the sake of the country and the people. Said the British Airways guys.

"These things are a burden to us! why should we accept them?" asked the little Jew, frowning.

"Don't forget, the premise of our negotiation is to sell it as a package, and if you are willing to accept all the workers, then our company can reduce the purchase price even more. Said the British Airways guys.

"What we need now is a detailed asset appraisal report and corporate balance sheet of Rover Motors, which is the most important part of this acquisition case, right?" Jia Lei asked.

"There are some things that our trade secrets are probably not available to you in our company. British Airways said with a frown.

"Huh...... Do you still have any trade secrets in Rover? The whole of Britain and even the whole of Europe know that you are losing money every year, and you live by selling your property.

Do you have to treat your finances as a trade secret?Could it be that you have lost a lot of money and want us to help you fill the hole?" asked the little Jew sharply.

After all, Jaguar alone sold more than £2.5 billion last year, and Rover's debts were basically paid off. British Airways hastened to deny it.

"What you're saying is that it's basically paid off, that is, there are still those that haven't been paid off in full, right?" Jia Lei immediately picked out the fault in his words and asked.

"Because Rover Motors is too big, and it has to produce and operate every day, the car companies will still incur some losses during our negotiation process. British Airways explained.

"If that's the case, I'm afraid we'll have to think about it more! In this case, let's send someone to your company to do a business appraisal investigation after we go back, and I hope your company can cooperate and give us a report that is not a real appraisal."

Of course, you can avoid the part of your company's trade secrets, but I want you to give us at least an approximate amount of losses. Jia Lei thought about it and said.

"Okay, we'll cooperate. The British Airways guy nodded, and usually this kind of business appraisal process is common for this kind of large acquisition.

After the two sides said goodbye politely, they both went back to have their own small meetings.

"Jia Lei, there is a problem with British Airways at first glance, I'm afraid the situation of Rover Motors is worse than we imagined. Little Jew said with a frown.

"It seems that this is true, I'm afraid their company's financial problems are very serious!" Mr. Jia said.

"In that case, should we try to change the company? I heard that three years ago, the Vickers Group was going to sell its Rolls-Royce Motor Cars, and their asking price was only 20 million. Little Jew said.

"No, the level of the Rolls-Royce is too high, we can't eat it for the time being! It's a special model for the British royal family, and if you want to run it well, you can't do it without a certain amount of connections and strength, but the two of us are both from the grassroots and can't enter the class of the European royal family at all.

Don't look at Rolls-Royce's customer base is a bit mixed now, but its customers have always had many European royals, and if something happens in the future, I'm afraid we can't afford to have such a big relationship, and your little baron is not even a fart in their eyes.

Since our strength is weak, we should eat as big a cake as we want, otherwise we will choke to death with a big pie!" Jia Lei immediately objected.

"Although Jia Lei is reasonable, I still don't want to give up Rolls-Royce Motor Cars, after all, you can buy one for only 20 million US dollars, and the car company that produces internationally renowned brands is too cost-effective......" Little Jew couldn't help but say that Ah Fei had smuggled cars before, so Little Jew knew that this money could be earned back in China that year.

"Don't look at the small amount of money used to buy this car company, but there are a lot of troubles behind it, Rolls-Royce cars and Rolls-Royce planes use the same engine. This is a high level of trade secrecy and has a wide range of implications.

Now Rolls-Royce is one of the world's three largest aircraft engine manufacturers, once we want to buy Rolls-Royce Motor Cars, then Rolls-Royce Aero Engines will definitely not sell us the patent rights of the engine.

The engine is the heart of the car, and a car that lacks an engine is a waste, even if the price is cheap, we can't buy it, can't we spend billions more to buy an engine patent?" Jia Lei said to the little Jewish analysis.

"You're right, a car without an engine is waste, and it seems that we can't buy a Rolls-Royce even if it's cheaper.

And I've heard that most of the Rolls-Royce cars produced by their car company have to be built by hand, and now the labor cost in the UK is so expensive, once we buy it, we will definitely lose money. The little Jew nodded.

"In fact, I think the $20 million price you're talking about might just be the money you paid for the brand, not the engine technology. Otherwise, the price of the Rolls-Royce brand would not be so cheap!" Jia Lei said, and the little Jew also felt that it might be the case.

"Well, I'll send someone to Rolls-Royce to get in touch and see what's going on over there. Little Jew said.

"Why haven't you given up yet? I said it, with the connections of the two of us, we can't support the marketing of this top brand. Jia Lei shook his head and said.

"I don't think there's anything I can't hold on, and if Rolls-Royce were really as noble as you say, it wouldn't be bankrupt!" said the little Jew.

"Rolls-Royce went bankrupt because of fate, and the war a few decades ago bankrupted many aristocratic estates in Britain, not to mention Rolls-Royce's consumer goods that depended on the aristocracy. Jia Lei shook his head and said.

"Let's go take a look, it's not much $20 million anyway, so it's an investment. Little Jew didn't care and said that he was rich now and his breath was bigger.

"Don't say that kind of thing yet, I always think that there must be something greasy in Rolls-Royce when it is sold so cheaply. Jia Lei said.

"Then let's go check it out!" said the little Jew.

*****

Sure enough, I didn't know if I didn't check it, but after only 3 years, Rolls-Royce's offer rose to 40 million pounds, and the people Jia Lei sent over even brought back a higher purchase price.

Of course, the price of 40 million pounds is not high, this was originally the price quoted by Rolls-Royce to BMW, Rolls-Royce is bent on selling its car factory to BMW, and if someone else buys it, the price will increase.

There is only one reason why Rolls-Royce Motor Cars sells so cheaply -

BMW Motor AG owns 10% of Rolls-Royce Aero Engines and is the largest supplier of parts and technology to Rolls-Royce Aviation.

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