Chapter 1372 The Geldau Group

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"If the two companies merge, how will the equity be divided?" asked Liu Dong after a long silence.

"After asking a professional appraisal agency to evaluate all the assets of the two companies, divide their respective shares according to their net asset value!" Rudolph said with a staring eye at Liu Dong.

Although the idea of merging Arcelor Group and Oriental Iron and Steel Group came to him when he saw Liu Dong in India. But the ambitious Rudolph was extremely determined about this idea. He knew very well in his heart that if this plan could be realized, then his influence within the Wittenstein family would be even greater, which would be of great help to him in taking over the family power in the future.

"I see, though, I need time to think about it!"

"Of course, but I hope you can give me an accurate message within a week. Rudolph didn't expect Liu Dong to agree immediately.

"No problem!"

"Also, if you have time, go to Europe as soon as possible, my father wants to meet his future son-in-law in person!"

"After arranging the matter at hand, I will rush there immediately!" Liu Dong said with a slight embarrassment.

"Alright then, I'll go first!"

"I'll send you!"

After sending Rudolph away, Liu Dong's expression quickly calmed down, and Helen didn't talk about it first. Regarding Rudolph's statement about the merger of Arcelor Steel Group and Eastern Iron and Steel Group, he has already made a 'bad' mark in his heart.

Liu Dong knows very well that in terms of net asset value, Dongfang Iron and Steel Group is definitely not comparable to Arcelor, not only in terms of steel production capacity, but also in terms of scientific research strength, the number of patent registrations and the reserve of senior talents.

Therefore, if the two companies merge, it is clear that the Hanhua Group's stake in the new steel company is in the minority. In this way, Liu Dong and his Hanhua Group also lost the right to speak in the new steel company.

This is what Liu Dong never wants to see!

But if it is not merged with Arcelor Group, Liu Dong cannot be indifferent in the face of the tide of integration and mergers and acquisitions in the international steel industry.

After sitting back on the sofa and thinking for a while, Liu Dong took out the phone and called.

"Chairman?"

"What's the matter, old man, I can't hear my voice for a few days!"

"How is that possible? I'm just a little curious about why you called me at night? This is the first time since I took over the Dongfang Iron and Steel Group!" Fang Guochun said with a smile.

"That's because you have led the development of Dongfang Iron and Steel Group well, don't worry about me!"

"Hehe, when did the chairman become so good at boasting!"

"Alright, that's all for jokes. Lao Fang, as the president of Dongfang Iron and Steel Group, I would like to hear your views on the future of the global steel industry and the future development plan of Dongfang Iron and Steel Group!"

Liu Dong's words instantly made Fang Guochun on the other side of the phone frown, he knew that Liu Dong's call late at night was definitely not untargeted. But I never thought that it would be such a big proposition.

Fortunately, these two questions are also things that Fang Guochun often considers, and it is not difficult to answer. But the real difficulty is whether his answer can satisfy Liu Dong?

But no matter what happened in the end, there was no time for Fang Guochun to prepare at this moment.

Therefore, after a little consideration, Fang Guochun took a deep breath and said in a calm tone: "Although the steel industry is known as a sunset industry in the international community today. However, as the most basic and important building material, steel is the most indispensable in the national economy. The difference is that low-energy-consuming, low-emission, high-value-added, and super-large-scale steel enterprises can continue to survive and achieve sustainable development. On the contrary, iron and steel enterprises with high energy consumption, high emissions, high pollution, single product structure, and a scale of less than 3 million tons will eventually be eliminated. Therefore, now the world's ambitious steel companies are carrying out cross-border mergers and acquisitions, and maybe in a few years we will be able to see the emergence of super steel trusts with steel production of 70 million tons, 80 million tons, or even more than 100 million tons!"

"Go on!"

"Hmm...... Based on the current development trend of the international steel industry, I think we Dongfang Iron and Steel Group cannot lag behind. Moreover, effective cross-border mergers and acquisitions can also obtain the patents and steel formulas of the acquired iron and steel enterprises, as well as more excellent scientific research talents, which will effectively supplement the shortcomings of our Oriental Iron and Steel Group and promote our development ......!"

"Since you say so, I think you have also studied the acquisition target, right?" After a little silence, Liu Dong said.

Originally, I planned to wait for this year's annual meeting to report to the chairman, when the third phase of the construction of the Yan*tai Steel Plant of the Oriental Iron and Steel Group could be completed. However, now that the chairman asked, there is no need for me to wait any longer...... After a long-term investigation by the group, we have identified two acquisition targets!"

"Doesn't it seem that you have a lot of ambitions?"

"Hehe, compared to Mr. Zhang of Xuntong, our courage is much smaller!" Fang Guochun's tone was somewhat envious.

is also the leader of the company, and people can already get the consent of the chairman to manipulate a super huge amount of up to $50 billion to buy Yahoo. In comparison, he is much inferior.

"There's no specific comparison between industries. If the development of Oriental Iron and Steel Group is good, I will not be stingy with investment. ”

"I understand the chairman!"

"It's good to understand, now let's talk about the two steel companies you fancie, right?"

"Hmm...... One of these two steel companies is located in China, which is Hangzhou *zhou Iron and Steel Group, and the other is located in the Americas, which is now the largest steel group in Brazil, the 'Gerdau Group'!"

"Hangzhou * Zhou Iron and Steel, Gerdau Group?"

"That's right!"

"If I'm not mistaken, Hangzhou * Zhou Iron and Steel should be a state-owned enterprise, right?"

"Yes, it is a state-owned iron and steel enterprise affiliated to Hangzhou City!"

"Since you know, do you think that with the current popularity of the domestic steel industry, it can be successfully acquired by us?"

Liu's concerns are not unfounded, especially since there are very few cases of large state-owned enterprises (SOEs) with good economic performance being acquired by private companies under China's unique economic system.

"Others may not be able to, but we have a 60% chance!"

"Sixty percent probability?"

Now the annual output of Hangzhou Iron and Steel is only 4 million tons, although the benefits are good, but it can only rank behind 30 among the many large state-owned iron and steel enterprises in China. If we take the expansion of production capacity after the successful acquisition as a condition, I believe that it should not be difficult to convince the Hangzhou municipal government that wants the economic development and tax revenue of the jurisdiction. Of course, there may be a need to pay some company shares in the middle!"

Speaking of this, Fang Guochun's tone couldn't help but slow down. He knows Liu Dong's domineering style in business management. Although the shareholding reform was carried out last year, more than 80% of the shares of Oriental Iron and Steel Group are still controlled by Liu Dong through a series of cross-shareholdings such as Hanhua Commercial Bank, Hanhua Holdings, and Standard Chartered Bank.

"Don't think I'm gluttonous, if the merger and acquisition of Hangzhou * Zhou Iron and Steel can really promote the development of the group, I will not be stingy to give up some shares!" Liu Dong said.

"Thank you, chairman, in that case, I am 80% sure that I will successfully acquire Hangzhou *zhou Iron and Steel!" Fang Guochun said excitedly.

"How do you plan to develop after the acquisition?"

"It is still divided into three phases of the project like the Yan*tai Iron and Steel Plant, and a production capacity of 30 million tons will be formed by the end of 08 at the latest! At that time, the Yan*tai Steel Plant will be responsible for the market north of the Yangtze River, and the Hangzhou *zhou Steel Plant will be responsible for the market south of the Yangtze River! In this way, our steel layout in China will be completed!"

After thinking for a while, Liu Dong nodded, "I agree to this acquisition plan! What are you going to do with the Gerdau Group? As the largest steel company in Brazil, it is not easy to acquire it!"

Liu Dong still has a certain understanding of the Gerdau Group, which is ranked 12th in the world.

It is the largest long product producer in the Americas, with 5 major business units under the group, 24 factories in more than a dozen countries such as Brazil, Argentina, Canada, the United States, Uruguay, etc., with an annual steel output of 13.5 million tons!

The acquisition of it is not as simple as Liu Dong taking the initiative to merge the Chimbaut Steel Plant in Peru into the Eastern Iron and Steel Group. Scrutiny from government departments will be one of the main factors influencing the acquisition.

"I know this acquisition will not be easy. But Gerdau is heavily indebted, and equity holders are eager to sell, and as for the Brazilian authorities, I think it wouldn't be a problem if we could put in a little more money!"

Fang Guochun's words pointed out the biggest hidden danger in Brazil's political situation - 'rampant corruption'!

Politician corruption has not been a new topic in Brazil since the democratic elections of 1989, and successive presidents have been plagued by corruption scandals.

Moreover, there is a historical tradition of corruption among politicians in Latin America, where politicians become officials to make money, and Brazil is no exception.

Politicians have invested heavily in a series of campaigns, usually in Parliament or in local government, before becoming ministers. Therefore, once many people take office, they want to think about how to get their capital back. Many high-level officials use their power to install friends and relatives who support them in key positions in government departments. These politically appointed officials do not pass the civil service examination, do not have good professional training, lack professional ethics, and often become a high incidence of corruption.

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………… (To be continued.) )