Chapter 285: Mutual Benefit
Almighty Cultivation Supreme
When Serena hung up the phone, Wang Dong nodded to La Paz, who was standing at the door, and asked him to prepare the car.
Tiehu followed Zhao Huang to the Caribbean Sea and enjoyed the sun and beach, so Wang Dong found La Paz and asked him to be Serena's driver.
La Paz was recruited by Musharraf, a former agent of the Inter-Services Intelligence Service and a fatal friend of Musharraf.
Like Musharraf, La Paz is also a middle-aged man, with a wife and children, and a very traditional mind, so he is sure that he will be safe with Serena.
It wasn't until La Paz had gone out that Serena came over.
"I just received the news that FN officially announced that it was withdrawing from the Indian Army procurement tender, on the grounds that it could not reach an agreement with the Indian side on the details."
Wang Dong nodded slightly, this result did not surprise him.
"Lawrence asked me to come over and say that he wanted to discuss further cooperation, and maybe mention the sale of a stake in FN."
"I've told La Paz to prepare the car, so I'll leave now."
Serena was slightly stunned, then nodded.
Wang Dong is the kind of character who does what he says, even if Lawrence didn't call, after receiving the news, he also asked Serena to visit Lawrence.
With the loss of the contract in India, the company is not far from going out of business.
A few days ago, Wang Dong had received news that the largest shareholder of the company, the government of Wallen, Belgium, once again proposed financing to other major shareholders.
At that time, Wang Dong concluded that FN would voluntarily withdraw from the procurement tender in India.
It's just that the problem of depleted liquidity has no room for maneuver at all.
Within three months, five bank loans will mature, and if the FN company fails to pay the principal and interest on time, the bank will apply to the court to freeze the assets of the FN company on the grounds of investment protection, and if the FN company cannot obtain financing, it will have to file for bankruptcy protection.
A century-old factory, it's just over?
It seems unlikely, but before that, another century-old factory, the American Colt Company, had gone bankrupt.
In the context of the recession in the industry, it is normal for FN companies to go bankrupt and go bankrupt.
In fact, this is also the key to the fact that FN has not been able to obtain financing from major shareholders.
Needless to say, the Valen district government uses taxpayers' money, which is strictly regulated, and even if there is money, it cannot be squandered by enterprises.
German Group Holding?
With H&K, it is also a shareholder of many firearms companies such as Glock and Steyr, and has a complete product line from self-defense pistols to remote-controlled weapon stations, and has built a complete industrial chain through shareholding and other means, so there is no need for firearms companies like FN Company.
In fact, FN's product line is almost identical to H&K's.
In the already sluggish market, there is no reason for the German group holding to bail out FN, let alone acquire FN.
FN is finished, and one less competitor is a great thing for H&K.
The GIAT Group in France?
In line with the basic principle of "one Europe", France has actually given up the firearms industry, the French special forces have taken the lead in purchasing HK416F, and the French Army has no plans to replace FAMAS for the time being, and even if there is, it will definitely consider H&K's products first.
In addition, the GIAT Group has a very small share of the firearms market and has little technical reserves.
The acquisition of FN will not only not help the GIAT Group to expand its business, but will also become a burden, that is, it will need to use enough funds to develop the market.
With H&K, a German group holding company, as well as Glock, Steyr, Seeger and other companies, how big of a market can the GIAT Group grab?
The ideal option is not to support an FN company, but to work with a German group holding company.
As for BAE Systems, even if it had the intention to acquire FN before, it would not be in this muddy water after the sudden rise of D&F.
It's not that BAE Systems doesn't have the strength, but it's not necessary.
In the afternoon of the same day, Wang Dong and Serena arrived in London.
However, BAE Systems was holding a board meeting, so it was not until the evening that Serena received a call from Lawrence to meet him at the apartment.
Lawrence is not from London, and lives in an apartment rented for him by the company.
Of course, it must be a luxury apartment in the heart of the city.
The two bosses discussed things, and naturally it was not Wang Dong's turn to come forward, he and La Paz stayed in the living room and did not go to Lawrence's study.
The meeting lasted until late at night, and Serena came out tired, but excited.
Judging by the looks, the results of the talks will not be much worse.
Leaving the apartment, on the way back to Edinburgh, Serena told Wang Dong the results of the talks.
At the afternoon board meeting, Lawrence had proposed to sell his stake in FN to D&F, and the board had upheld it.
Of course, there are two premises.
First, D&F will be able to complete the development of the submerged bomb in the near future, and BAE Systems technicians will have to participate in the acceptance test.
To put it simply, it is to ensure that the countersunk munitions developed by D&F can meet the basic requirements for participating in the OIC project.
Second, D&F had to sign a technology and patent licensing contract with BAE Systems to form a partnership and participate in the OIC project as a subcontractor.
Obviously, D&F is to do the bidding of BAE Systems.
In addition, Lawrence has also assured that BAE Systems will not enter the small-caliber ammunition market, and will transfer the orders obtained to D&F on a contract production basis, and BAE Systems will only charge a service fee from them, so as to ensure D&F's monopoly position.
As for the method of acquiring the shares of FN, Lawrence meant an equivalent exchange, that is, after D&F signed a licensing contract with BAE Systems, it was directly deducted from the contract amount, and the excess was refunded and the deficiency was compensated, so that both parties would not lose money in the transaction.
Of course, this is more for tax avoidance.
If the transaction is cash, it will be included in the operating income of BAE Systems, and it will have to pay a heavy tax, and the equivalent exchange needs to pay only VAT.
By comparison, BAE Systems was able to pay almost £100 million less in taxes.
Of course, the same is true for D&F.
Because Wang Dong had already set the basic policy, Serena agreed to Lawrence's proposal and also made a guarantee for the development of the headless bomb.
In a month at the latest, D&F will be producing a small-caliber countersunk and inviting BAE Systems technicians to participate in the acceptance test.
According to the agreement between Serena and Lawrence, after the small-caliber headless bomb passed the acceptance test, D&F and BAE Systems will formally sign the technology and patent licensing contract, and at the same time sign the exchange contract for the shares of FN, that is, after obtaining the shares of FN, that is, after obtaining the board seat of FN, D&F will officially participate in the OIC project as a second-level contractor.
Fundamentally, it's a mutually beneficial collaboration.