Extraordinary Genius

First of all, the Brazilian Freshwater Valley did not want the Polar Bear Mining Group to succeed in acquiring the Rituo Group, the world's largest supplier of iron ore, with more than one-third of its iron ore deposits and the leader of the iron ore industry.

At present, the demand for iron ore on Huaxia's side is soaring. Although it is closely related to Russia's side, Russia's iron ore reserves are not high enough to meet Huaxia's market demand. Huaxia's iron ore production is not high, so it can only be imported.

Freshwater Valley, Bi He Bi Too, Li Tuo, these three are the main importers of iron ore in Huaxia, while Huaxia has a general relationship with Australia, but they have been closely connected to Brazil in recent years, and they have also cooperated very much.

If Polar Bear Mining Group succeeds in acquiring Lituo Group, then Feng Yu, as a Huaxian, has the innate channel advantage in this regard. Huaxia must be a large amount of imported Lituo Group iron ore, so there is nothing left of their freshwater valley.

Even if Li Tuo Group can't satisfy it, it is imported Bing and Bing Too, because many of Bing and Bing Too's mines are closer to Li Tuo Group, there can be a lot of cost savings in transportation, this will kick Freshwater Valley out of the game.

So Freshwater Valley started contacting Huaxia, one hoping to sign a long-term supply contract, and the other trying to see if this had anything to do with Huaxia's steelmaking companies.

Huaxia already knows that Feng Yu's Polar Bear Mining Group is acquiring Lituo Group. It is said that it has entered the negotiation phase, and must have purchased from its own people since then.

One is that Feng Yu made money for his own people, and the other is that Feng Yu has never pitted his own people to do business with Feng Yu. They feel more comfortable, and Feng Yu will definitely give them priority supply when the ore is urgently needed.

So both Huaxia and Freshwater Valley say that we don't have a long-term supply contract, because iron ore prices have been volatile lately, and they want to take another look at it, which is actually rejecting the Freshwater Valley.

Freshwater Valley, at first glance, this Huaxia steelmaking company must know about this, this is to say goodbye to them freshwater valley.

Huaxia is the biggest customer in the Freshwater Valley, and sudden loss will have a huge impact on their iron ore sales. That's when Freshwater Valley started contacting other mining companies to block the Polar Bear Mining Group.

Simply put, if they quote against the subsidiaries of the Lituo Group and eat the mines of the Lituo Group separately, then the Lituo Group is not worth mentioning.

The whole takeover of Little Group, none of them can do it. Freshwater Valley may be able to collect this money, but it will never get past the local political axes or the EU gates, acquire the Lito Group, and they have a complete monopoly on iron ore, which hurts the interests of all iron ore or steel-importing countries.

But if you tear apart the mines of Li Tuo Group, you can buy them separately. The slight expansion of the Freshwater Valley will not be hampered, and other companies will be able to scale up, and the Litou Group will become history.

What is the premium you can get from Polar Bear Mining, 20 percent, 30 percent? Together, we mining groups get a premium of 50 percent!

It would be cost-effective to allocate an additional $23 billion to each of these enterprises, but to take out an extremely powerful competitor.

Kirilenko called Feng Yu as soon as he found out about it. He was in a hurry. How could those enterprises have joined forces under the leadership of Freshwater Valley?

After listening to Kirilenko's description, Feng Yu asked hastily: "Brother Ki, do you think this can succeed? ”

Kirilenko stunned for a moment, couldn't he succeed? Wouldn't it be a good thing if they could pay more? The shareholders of Lito Group should be very happy.

“Ki, think about it, it's Freshwater Valley that leads the company, don't say $23 billion more, $23 billion more, so long as you can swallow Li Tuo Group, it's all worth it. But they couldn't do it at all, and nobody would agree to let them monopolize the iron ore deposits. ”

“Their separate takeover scenario looks reasonable, and you split up the Li-To Group, and then the shareholders of the Li-To Group can make more money, but think about the operability of this. ”

“First of all, when we acquire Li Tuo Group as a whole, then the headquarters of Li Tuo Group will certainly not be relocated, nor will the three major group companies under the company be relocated, which is to reduce local obstruction. ”

“How are they going to split up the mines, businesses, etc. of the Litao Group? How many companies, how many countries, these blockages, do they really connect? ”

“Moreover, $23 billion is nothing to Freshwater Valley, and their profit of $10 billion a year, even a premium of $23 billion, is acceptable as long as it significantly benefits the expansion of the business. ”

“But the small mining companies, such as the aluminum group, which is the second largest in the world, the aluminum industry in the United States, they made more than three billion dollars last year, and all of a sudden they overpaid, and they dried up for nothing in a year, and the business didn't expand much. Do you think they'd agree? ”

When the Canadian aluminum industry was sold, many mining groups such as Litao Group, Huaxia Aluminum Industry, and US Aluminum Industry were all competing, and eventually Litao Group took it at a high price and consolidated the resources to become the world's number one aluminum industry.

The US aluminum industry has no money to acquire, otherwise they will be the aluminum industry boss. Now let them have a $3 billion annual profit, a premium of $23 billion to acquire some aluminum assets, and they have to have that money too.

Now the economic situation in the US is not good. The US aluminum industry can guarantee profitability. How dare you make any more big moves?

As for other mining groups, not to mention, how can they afford to acquire the business of Li Tuo Group if none of them make more than $5 billion a year?

During this time period, they will not be able to issue more stock, the price is too high to sell at all, the price is too low and the price is too low, how can they raise funds?

Freshwater Valley took the lead, and it was just a joke. When did they hear that small businesses were united to divide a large enterprise that was still profitable and in good asset condition?

“So you don't think this is going to work, it's just a smokescreen bullet from the Freshwater Valley?” Kirilenko asked.

Feng Yu chuckled: “This is not even a smokescreen bullet, because the management of Lituo Group will never agree to it as long as it is not all brain retarded. Our biggest competitor, or only competitor, is Bi He Bito, other companies, not enough to worry about! ”

……