Extraordinary Genius

“Feng, your negotiations with that bank are going well. I think the media has covered your acquisition.” Kirilenko was pleased with Feng Yu's success.

“It's okay, I've already given them a very high price, at a time when so much money can be put out and so few people are willing to buy their bank, and they don't have much choice in themselves. ”

Feng Yu leaned against the sofa in front of the stove and roasted the stove in the cold winter. It was a pleasure. Fortunately, Ralph had already done his job before. Feng Yu just came to slap the board. Being the boss was just so good. He slapped the board only and didn't need to do anything else.

“As long as everything goes well, I'm in touch with Li Tao here, but we have a strong competitor. ”

You got a competitor? Feng Yu remembered that in his previous life, it seemed that Li Tao had heard of the acquisition, but eventually it seemed impossible, also because of the impact of the financial crisis.

Feng Yu knocked on his head: “Is it Freshwater Valley or Bi He Bito? Let me guess, is it Bikawa Bito? ”

The two companies are currently ranked first and second in the world in iron ore and third in Litou. Brazilian freshwater valleys account for more than a third of the world's iron ore output, roughly the sum of Bituo and Rituo.

So basically the price of iron ore in the world is set in the Freshwater Valley, and they're the leader of the industry. However, Li Tuo's second headquarters is in Australia, and his relationship with Bi He Bituo is good, and both sides have been joining forces to fight the Freshwater Valley.

Given the monopoly factor, the Freshwater Valley would not succeed if it wanted to acquire it. Otherwise, they make up half of the world's iron ore. How can anyone else play? So this competitor is Bingo Bingo?

Kirilenko showed admiration, he hasn't said it yet, Feng Yu guessed.

“That's right, Bi He Bito, they bought Li Tuo company last year and bought it as a whole. The initial offer was $150 billion, which rose to over $170 billion at the beginning of this year. ”

“At that time, the stock prices of both companies were rising rapidly. But then came the financial crisis, the price of Bing and Bing Too and the price of Li Tuo were falling, and the agreement between the two sides itself was not negotiated, which was put on hold again. ”

“This also gives us the opportunity, if they had already agreed, we wouldn't really have had the chance to buy it at this time. And because of the financial crisis, the pace of industrial development is declining, such as the automotive industry, the mechanical industry, the construction industry, etc., and the demand for steel is decreasing, leading to lower prices for iron ore, etc. ”

“At present, Li-Tou's market capitalization stands at just over $100 billion, down more than 40 percent from its peak. ”

Kirilenko looked delighted, and if calculated at peak market value, they didn't necessarily start buying in cash. Moreover, the economic crisis brought about by the financial crisis will not take too long, and the steel industry is now at a very low point, indicating that the prices they have acquired will never be excessive.

Once Feng Yu picked his eyebrows, only $100 billion came out? This price should be less than its true value. After all, in addition to iron ore, there are many other mineral resources, excellent technology and many rich minerals.

“What about the finances? Li Tuo is a listed company, did they lose this year, how much do they expect to lose or profit next year? Also, check carefully to see if they have financial building-forgering issues. ”

If the finances are not real, then their analysis will go wrong, and they may have to pay a lot more when it comes to influencing judgment.

Given the overall decline in the steel industry this year, it is also normal for Litao to incur losses. Loss in a given year does not mean that the company will always lose, after all, they still have a lot of minerals, and these are real estate properties that keep their value.

However, a mineral resource seller, if it really loses, is also quite disappointing. Feng Yu should also reconsider whether this company is worth buying.

“In the financial statements, this year they are still profitable, with a profit of more than $7 billion, which belongs to their entire Lito Group. After all, they made a good profit in the first half of the year. Below the Lito Group are UK companies, Australian companies and Canadian companies, listed in London and Australia and New York, respectively. ”

“They are the largest in the world in the aluminum industry. To a large extent, aluminum pricing can be affected, which is much more than their say on iron ore. ”

“According to their listing statements, their turnover this year is about $30 billion. At the beginning of the year, they planned a turnover of $50 billion this year, and if it hadn't been for the fall in multiple mineral prices, demand would have fallen, perhaps they could have done it. ”

“Well, the corresponding Bing and Bing Too turnover is about $40 billion, with a profit of about $13 billion. Freshwater Valley, the boss of the iron ore industry, is miserable. Planned turnover is also about $50 billion, but turnover is only about $32 billion. There is no way. Iron ore prices have fallen the most. Their profits are close to $12 billion. After all, they are mainly exported iron ore. ”

“In addition, the US aluminum industry also has a turnover of around $30 billion this year, with profits of just over $3 billion. If we acquire the Lito Group, it is also one of our competitors. However, based on the company's profit margin, they have too low mineral reserves and high mining costs, mainly for processing. ”

“In terms of mineral reserves, the US aluminum industry is far less than Li-Tou. Li-Tou acquired the Canadian aluminum company last year. Because of the poor economic situation and the need to upgrade the equipment and so on in the mines there, the mining volume decreased. Starting in '09, Li-Tou will be able to dominate the aluminum industry. ”

Kirilenko made it clear that with the acquisition of Lito Group, they would all have a huge voice in the aluminum and iron industries, plus their original voice in gold, nickel, copper and other minerals, they could jump to become the world's leading mining group!

When you become a boss, you become more operational. Whether it's crushing the little ones, annexing them, or boosting the profits of the industry as a whole, it's what they say.

With prices such as metals falling dramatically, they can also guarantee such high profits, which is the benefit of mining companies.

All that remains is their profits, counting only the cost of extraction, transportation and maintenance. In fact, Polar Bear Mining Group's profits this year are also good. It's just a unlisted company, without participating in Fortune's top 500 ranking, otherwise it can definitely enter the top 500.

But not first, Feng Yu is not rare at all. After Polar Bear Mining Group became the number one in the world, Wealth was not ranked, nor could it conceal the glory of Polar Bear Mining Group. Instead, it proved that Wealth was not just enough!

“Little's share price is still falling, isn't it? Why don't we buy their shares in the stock market and get the initiative first?” Feng Yu thought about it and made a decision.

……