Chapter 414: Acquisition of Embraer

"How is it possible, what we need is to make money, not to spend money to buy a company that is now bloated, on the verge of bankruptcy and without any core machine technology capabilities, and the acquisition of Embraer does not make any sense to Northrop, it will only become a burden to Northrop."

Ron's idea of Yang Hui is 10,000 yuan, what is the point of an airline that makes straight line passenger planes worth acquiring, and this company's organization is bloated, and its business has shrunk seriously in recent years, and the proud Northrop will never want this kind of oil bottle.

This is Northrop's attitude, and he has little interest in Yang Hui's plan to acquire Embraer and take advantage of Embraer to carry out the whole life cycle maintenance of FC-17, and at this time Yang Hui is urgently needed to propose another plan, which is also the plan that Yang Hui most wants to see.

"Embraer's product line is absolutely no problem, the technical capabilities of the entire Embraer industry do not have too many core machine technologies, each key system is the mainstream of the international market procurement, but this does not mean that Embraer must not be profitable, 85 years ago Embraer without the drag of the Brazilian government can develop rapidly, the sales momentum of each production level is good, it is definitely a potential stock, and now Embraer is only in the throes of transformation."

To continue the later plan, according to Yang Hui's need to first establish the image of Embraer as still saved, not a Adou who can't be helped, at least let Northrop still be interested in Embraer, so there are various explanations for Embraer.

Of course, Yang Hui's explanation is not groundless, this is an absolutely correct analysis, the reason why the last face of Embraer can come back to life. It's because the company already has a lot of potential, coupled with the low labor costs in Brazil. Canada's Bombardier, Dutch Fokker and Sweden's Saab are not comparable to Embraer in terms of labor prices.

This is one of Embraer's strengths, coupled with the success of the previous privatization of Embraer. The Brazilian government sold Embraer to Sierra Nevada, an American second-tier aerospace manufacturing and research company whose products were mainly focused on the aerospace sector, so the company had a bad reputation, but the company made a fortune by taking advantage of the US-Soviet space race in the Cold War.

And the most amazing thing about this company is that in the 90s, after the Cold War between the United States and the Soviet Union, the United States' investment in the space field plummeted, but it did not embark on the road of being swallowed up by other companies, which is very strange.

Need to know in the 90s. Boeing and McDonnell Douglas in the United States merged; Northrop and Grumman merged; Lockheed, Martin. Ereetta merger, these companies that were glamorous during the Cold War have all merged, why can you Sierra Nevada be alone?

This was thanks to a successful investment by Sierra Nevada in the early 90s, when they acquired Embraer from the Brazilian government, quickly completed the privatization of Embraer, and provided Embraer with a large number of orders for the huge regional airliner market in the United States in the 90s, and finally allowed Embraer to achieve a second rapid development in the 90s.

This is the brilliance of Embraer, which can summarize the success of Embraer in a nutshell. That is because there is a leading party in the US aviation industry, and after quickly rectifying its own problems, it won the world's largest civil aircraft market in the United States with the cheap labor cost of Brazil.

So now replace the American acquirer (the Belt and Road Party) with Northrop, who is more familiar with the road conditions. It is conceivable that the entire Embraer industry can embark on a new path to success?

The answer is yes, and it goes without saying, but the problem now is that Northrop doesn't have much faith in Embraer. In Northrop's view, would the powerful Northrop, as a first-tier American aviation manufacturer, put down its value to buy such a company?

"You just say good things about the future of Embraer. But Embraer is not going to survive this hurdle yet, and I'm going to convince Northrop shareholders that it's too little to buy the company. It's too risky for me as a professional manager. ”

The situation has developed to this point, and the opportunity for Southwest Science and Industry has arrived, and Northrop is not interested in Embraer now because they can't see the future prospects of Embraer, so Yang Hui will show him the future prospects of Embraer.

The so-called future prospect is definitely not a spoiler for Yang Hui to be a god, but it means that Yang Hui is now putting forward a future that can be seen and touched, so that Northrop himself can't help but jump off this sweet trap and be this leading party.

"In this case, then we will increase the bargaining chips, Northrop alone to acquire Embraer is too risky, then plus our Southwest Science and Industry, the two sides will participate in the acquisition of Embraer project, the risk will naturally be small."

That's right, Yang Hui's biggest ambition is to call this opportunity to join the board of directors of Embraer with Northrop.

And Ron heard Yang Hui say that he was going to participate in the acquisition of Embraer together, and felt that this was simply a world-class joke, no matter how downtrod Embraer is now, it is at least worth more than one billion US dollars, and how much money can Southwest Science and Industry provide to participate in the acquisition.

Tens of millions, 100 million, or 200 million dollars?

This is unlikely to play a big role in the whole acquisition plan, and in the end, Northrop will take the lion's lead, which is not much less risky, so Northrop will not take this risk.

"How much money can you provide for the acquisition, as far as I know, it is absolutely impossible for your Southwest Science and Industry to quickly cash out more than 50 million US dollars, which is a drop in the bucket for the entire acquisition."

When Ron spit out this sentence word by word, both in his words and on his facial expressions showed a strong disdain, and it was really Southwest Science and Technology that he couldn't get the money.

But does it necessary to come up with real money to invest in a company? The facts tell people that there are many ways to buy shares in a company: share exchange, share gifts, and Yang Hui's upcoming technology shares.

"Yes, we Southwest Science and Industry really can't come up with so much money, but we can flexibly use other ways to invest in Embraer, for example, we will take the entire FC-17 project, all orders except for the Republic of China, the possible future purchase of FC-17 in other countries, all the whole life maintenance, and the property rights of the entire FC-17, all packaged and calculated together, and used as technology to invest in Embraer."

As soon as these words came out, Ron was stunned by Yang Hui, he didn't think that Yang Hui was so heroic and dared to invest such a promising project as a technology in a dying company. As the developer of the F5, a cost-effective and cheap second-generation fighter, Northrop knows the huge potential of the FC-17, so he is eager to join the FC-17 project to get a piece of the pie.

stared at Yang Hui's eyes and spit out four words: "Is this true?" ”

Seeing this, Yang Hui knew that Northrop had already been tempted, and in the face of Yang Hui's big money, Ron couldn't resist such a temptation, although it was refreshing for an old company to have a large amount of capital injection, but it was always more exciting than a promising project injected into the company.

"Of course it's true, Southwest Science and Industry is willing to package all the businesses in the FC-17 project except for the Republic into Embraer in exchange for Embraer's shares, but the premise is that Northrop is also willing to inject funds to acquire Embraer together, with capital and technology, why not worry about the great cause!"

At this point, Yang Hui played all the hole cards, and Northrop couldn't resist it at all, in the face of such a temptation, and Yang Hui's plan to leak so domineeringly, Ron couldn't help but be arrogant.

"Okay, I think this plan is feasible, Northrop will accompany you Southwest Science and Industry to go, as long as we complete the acquisition, rectify the internal organization of Embraer, just by virtue of FC-17 all overseas business except for the Republic, the company's profitability can be realized, and Embraer's civil aviation regional airliner business will also improve in the future."

It is worthy of being a veteran aviation industry company, and you can see at a glance the benefits of the FC-17 project after it is injected into Embraer. Of course, the Southwest Science and Industry led by Yang Hui will naturally not suffer losses in this project.

First of all, this time the FC-17 project is only an overseas business incorporation, which will not affect the emergency transition between the second and third generation aircraft used by the army of the Republic. Secondly, after the entire FC-17 is merged into Embraer, Southwest Science and Industry will also have a significant proportion of shares in Embraer, at least not less than 30%.

With this at least 30% of the shares, whether it is Embraer's FC-17 business or Embraer's civil aircraft business, it will continue to inject a steady stream of capital into Southwest Science and Industry in the 90s.

It is too late for Yang Hui to be happy with so many benefits in exchange for an FC-17 project, which can also effectively avoid the sanctions imposed by Western countries on the Republic after 89 years, resulting in the FC-17 project not having more room for development.

Whether you admit it or not, after 89 years, the export of military equipment from the republic has almost stagnated, and one of the reasons is because of the sanctions imposed by Western countries.

But after the project was transplanted to Brazil, it was different, and when the time came, it was just one sentence: "This aircraft is made in Brazil, it has nothing to do with our republic, and no one can stop the international export of FC-17." "With Northrop's endorsement, everything will be much easier.

As for what about the needs of the army of the Republic and the Southwest Science and Industry after the transfer of FC-17 to Brazil? This is not simple, the army wants FC-17 is just a transition, and Project 10 is orthodox, when Project 10 is successful, that is, the day FC-17 completes its mission, Yang Hui has reason to believe that under his influence over the years, Project 10 can be finalized faster.

At that time, it doesn't matter what FC-17 is, with the No. 10 project, it will be completed, and then the Southwest Science and Industry will not have to fly with the light single-engine fighter business to grab food, maybe the No. 10 project can break through the zero export that the previous one did not achieve. (To be continued.) )