Extraordinary Genius

Chapter 1618: Strengthened Business Expansion

Ralph, of course, didn't just say that, but they were really going to take over the supermarket group at full cost. This North American supermarket group, which of course is not purpose-built, is currently ranked eighth in North America and has an annual turnover of more than $30 billion.

If this supermarket group were acquired and merged into the Taihua supermarket group, it would once again increase the size of the Taihua supermarket group while also reducing costs.

Feng Yu had Ralph acquire them in the name of Feng Yu Holding Group and sell them to Tai Hua Holding Group. After merging them into Tai Hua Supermarket Group, they could also expand Feng Yu's share in Tai Hua Supermarket Group.

Di Brown is pissed off, and this supermarket is an important piece of chess for their entry into the North American market and an important means for them to scale up.

They intend to take full ownership of the supermarket group, then merge some of the similarly sized supermarket groups again, and then they can go back to the top three retail giants in the world, squeeze the Taihua supermarket group down again, and get rid of the polar bear supermarket group that is catching up with them.

Now it looks like this Wind and Rain Holding Group is competing with them.

What he did not know was that Ralph had not only contacted the supermarket group, but also the shareholders of several supermarket groups, who had spontaneously contacted him and intended to sell him some shares.

Some of them lost money on other projects and needed to be covered by funds, others were intended to invest in other industries, raise funds and others were experiencing a decline in supermarket turnover, which they needed new shareholders to stimulate.

So Ralph has a lot of options, not just shares in this supermarket.

But other supermarkets sell too few shares to make Feng Yu satisfied. Even if you can't control it, but you can't become a small shareholder. Why should you occupy more than one-third of the shares and avoid the other party's absolute control?

Feng Yu intends to open up and expand the advantages of Feng Yu Holding Group and Taihua Holding Group after making a big vote this time.

This would make the equity structure more complex and secure through cross-shareholding.

Not only in retail, Masahiro Tortoise is also in contact with automotive, IT, electronics, etc., and of course is an island country's dominant industry.

Many companies in Feng Yu may have the highest brand awareness and the highest brand value, but not the scale.

For example, wind and rain electronics and wind and rain appliances, compared to the YANNI Group and Xiaoxia Group, are still too far apart.

Others are also electronics, but others can grow very well in the derivatives industry and become the world's top big companies.

The size of a single factory, wind and rain electronics and wind and rain appliances are far off.

If it were possible to acquire a leading electronics company at this time, it would be extremely beneficial to scale up.

And the same goes for cars. Although Ice City Machinery Manufacturing Group is the boss of Huaxia, the entire world, in comparison, is not in the top 10 in terms of sales or brand value.

If you can acquire some automotive brands at this time, you can use each other's channels to promote Songjiang Automotive. After five to ten years of development, Songjiang will truly take over the market.

Enterprises grow to a certain size and often embark on a path of expansion of acquisitions and mergers. Because in general, when enterprises develop, they tend to dominate a market and then slowly expand it.

But when you're dominating one market, your peers are dominating another. You want to expand the market, your peers want to expand the market.

Often, neither product is completely ahead of the other, has mutual advantages, and has loyal consumers. Competing for the market at this time could hurt both.

So what's the most common solution for Europe and America? Merge!

If it's a small one, a big one, then it's definitely a big one trying to acquire a small one. Sometimes mergers and acquisitions are used.

But if the size of the two companies is similar and no one can guarantee that they will be able to acquire each other, the merger model will be adopted and all shareholders will be able to make money by combining the strengths of the two companies.

This is typical of Daimler-Chrysler, a product of the merger of two very powerful car companies.

After the merger, the shareholders of the original two companies became shareholders of the new company, so that shareholders could make more money. The only thing they want to compete with is the power and brand of the merged company.

Of these, little swallowed examples, not none.

For example, Shitong, this is one of the most typical examples of small swallows. But as a result, the company quickly became the world's second-largest network and communications group in two or three years, with a market value of nearly 200 billion dollars.

But the reality is that they owe more than $40 billion, and they lose a lot each year.

In order to maintain the stock price, they had to take risks and make false accounts. Then, after Feng Yu found someone to burst out, the company's share price jumped quickly and eventually went bankrupt.

The former shareholders of Shitong, once on the billionaire list, followed by bankruptcies, many more.

Feng Yu used a different method, he did not intend to acquire it, he planned to acquire it in cash.

First of all, he has a lot of cash now, and after this one, he will have more cash, which will certainly be spent.

Acquiring a well-known peer company and expanding the industrial size of your company is the surest way to go, much better than entering a strange field. One is more manageable, and the other can integrate strengths and resources to make the business stronger.

Unless this unfamiliar area is of strategic importance, such as the shipping industry, then it is different.

The most important of these needs to be scaled up are those that do not become the world's number one business. Already the number one in the world, if we continue to expand, we will have a lot of trouble.

For example, there will be suspicions of monopolies, and countries will boycott them.

But it would be much easier if it weren't the first in the world and not after the acquisition. Feng Yu intends to turn some enterprises into the second and third largest in the world, and then become the first in the world through his own development.

This avoids some of the problems that may be involved, as well as challenges and impetus.

Or if Feng Yu wants to get fat in one bite, it's harder. For example, in the automotive industry, if Feng Yu is to become the world's number one, he has to acquire four times the size of Songjiang Automobile, which is not only a small amount of money, but also an astronomical number.

But acquiring some automotive brands, and then slowly developing, within a decade, becoming the top five automotive companies in the world, is still very likely. And then slowly, there is not necessarily a chance to become the boss of the world.

These very large acquisitions are temporarily unavailable. Feng Yu will not pay for them at this time. After a year or two, after the economic crisis, this is a good time for Feng Yu to make a move!

……