Fortune 500 Schneider Electric Group Acquires Chongqing Ensun

Schneider Electric

The world’s top 500 companies, headquartered in France, provide total solutions for energy and infrastructure, industrial, data center and networking, and building and residential markets in more than 100 countries. In 2010, they had sales of 19.6 billion euros. According to an announcement released in February this year, Schneider’s net profit in 2011 reached 1.82 billion euros, a year-on-year increase of 5.8%.

NVC Lighting

It was listed on the main board of Hong Kong on May 20, 2010. It has manufacturing bases in Guangdong, Chongqing, Zhejiang, and Shanghai, and has established two major R&D centers in Guangdong and Shanghai, and has more than 2,000 brand stores.

China Business News reported that the Schneider Electric Group, a Fortune 500 company, is "urgent marching" in Chongqing. A few days ago, Schneider and NVC Lighting Holdings Co., Ltd. reached an agreement for acquisition and cooperation, and the entire Chongqing Ensen Electric Co., Ltd., located in Wanzhou, was swallowed up to build the first production base in the southwest. The reporter learned yesterday that at present, the relevant procedures for the acquisition have been basically completed, and the Schneider Chongqing office will soon be relocated and expanded.

Schneider team enters Ensun

Schneider, an electrical giant with an annual sales income of 10 billion euros in the global market, is rapidly taking root in Chongqing in his own special way.

"Snyder's people have already entered the company." Yesterday, Chongqing Ensheng Electric Co., Ltd. (hereinafter referred to as Ensun Electric) Administrative Department Mr. He said that the company's deputy general manager level and above have a total of more than 10 high-level team, all from Schneider send.

Ensen Electric's industrial and commercial registration information shows that the company was established on October 17, 2011, with a registered capital of 90 million yuan, which is a foreign-funded enterprise. The production base is located in Tianzi Park, Economic Development Zone, Wanzhou. The legal representative is Yin Tao. Its business scope involves Production and sales of electrical products, intelligent lighting, low-voltage electrical appliances, exhaust fans, Yuba, integrated wiring lines.

Mr. He revealed that at present, Ensun Electric is in normal production status, and the company's name and product have not changed. The personnel recruitment information published by Schneider shows that the company is affiliated with the Smart Life Space (China) Division of Schneider Electric (China) Co., Ltd. The total area of ​​the factory is more than 20,000 square meters, and the total number of employees is nearly 400.

The purchase price is more than 300 million yuan

Why does the unnamed Ensun Appliance attract the world's top 500 players? This starts with NVC Lighting Holdings Co., Ltd. founded by Chongqing businessman Wu Changjiang.

Earlier this year, Schneider Electric (China) Co., Ltd. and NVC Lighting Holdings Co., Ltd. reported to the Wanzhou Bureau of Commerce on the acquisition of cooperation documents. The two companies agreed that NVC would transfer some of its assets located in Wanzhou to Schneider. At the end of January this year, Wanzhou Bureau of Commerce approved the acquisition cooperation case.

Cao Huazhong, head of the Foreign Investment Section of the Wanzhou Business Bureau, confirmed that NVC's assets, which NVC refers to, refer to Chongqing Ensun Electric Co., Ltd. Xu Renjin, chief legal advisor at NVC Lighting, revealed that Schneider spent more than 300 million yuan to complete the acquisition.

It is understood that prior to the acquisition, Schneider executives had rushed to visit Wanzhou on several occasions. In early August of last year, Zhu Hai, chairman and president of Schneider Electric China, also visited Wanzhou.

Pushing deeper into Schneider to seize the southwest market

Professor Zeng Guoping of the School of Public Administration of Chongqing University believes that buying a ready-made factory can save a lot of time, as opposed to buying land and building a factory. Through cooperation with NVC Lighting, Schneider undoubtedly found a shortcut to quickly enter the market, achieving a double harvest of production bases and sales channels. From its approach and approach to Chongqing, the importance attached to the Chongqing market can be seen.

It is understood that there are numerous domestic and foreign brand competitions in the electrical (including transformers, high and low voltage switches, and control systems) markets in Chongqing and even in the southwest, including Siemens, Schneider and ABB. Prior to this, ABB had built a factory in Ye.

However, there is currently no official statistics on the market share occupied by various companies. What is certain is that through the acquisition of Ensun, Schneider will greatly increase its strength.

Yesterday, the reporter tried to contact the person in charge of the public relations department of Schneider Electric (China) Co., Ltd., but as of the time of the press release, his office phone number has not been answered. After many setbacks, the reporter contacted Deng Baiqi, the technical support manager of southwest Schneider.

Deng Baiji said that Schneider has set up an office in Chongqing long ago. However, since there is no production base in Ye, the products sold mainly come from places like Huizhou in Guangdong. After having its own factory in Chongqing, it can reduce production, logistics distribution and labor costs, and quickly seize the market. “Chongqing’s rapid economic development has great demand for electrical products. We are very optimistic about the future development prospects. The group’s senior officials had boldly predicted that sales figures in the future will increase severalfold.” He said that after the acquisition is completed, it will help Pushed Schneider to head the Chongqing and Southwest markets. In addition to the acquisition, the Schneider Chongqing office will also be relocated recently. It is planned to move from Yuzhong District to Jiangbei this year and the office space will be expanded from the original 300 square meters to about 2,000 square meters.

The reporter learned from the management committee of Wanzhou Economic Development Zone that Schneider has plans to carry out technological transformation and expansion of the Wanzhou base. He wants to produce intelligent terminal power distribution and electrical products in Wanzhou in the future. At present, both parties have conducted preliminary communication on this matter.

Secret

Schneider Curve Acquires Engen

Yesterday, NVC, the chief legal advisor of NVC, disclosed details of cooperation to reporters.

As early as the end of 2010, Schneider extended an olive branch to NVC Lighting and reached an agreement. In September 2011, NVC announced that the company’s six shareholders sold 9.2% of their shares to Schneider at a price higher than the market price of 11%, for a total price of nearly HK$1.275 billion. As a result, Schneider became the third largest shareholder of NVC Lighting. At the same time, NVC Lighting and Schneider entered into a strategic cooperation agreement for the sales network for a period of 10 years.

There is another acquisition between Schneider and NVC, which is Schneider’s plan to acquire some of the assets of NVC Lighting, a company in Wanzhou, Chongqing Enlin Electric Co., Ltd. After the shares were completed, Schneider and NVC Lighting have been negotiating the acquisition details.

Enlin Electric is one of the main manufacturing enterprises of NVC Lighting. It was established in September 2008. It mainly produces electrical products and specializes in the research and development of products such as switch sockets, kitchen appliances, integrated ceilings, low-voltage electrical appliances, intelligent lighting, and control systems. , production and sales. Its product name is "NVC Electric", with an annual sales income of nearly 200 million yuan.

Xu Renjin said that Enlin Electric is not a listed company asset of NVC Lighting. It is a company initiated by Wu Changjiang, chairman of NVC Lighting, and a number of natural persons. It is related to a listed company and Wu Changjiang has nearly 40% of the shares. .

“Forming Ensun is a requirement of the acquirer.” Xu Renjin said that under normal circumstances, mergers and acquisitions cases are divided into equity acquisitions and asset acquisitions. When assets are acquired, the acquirer usually takes into account legal and tax issues. It is required that the required assets be put together in a "pocket" so that it will be easier to operate. In order to promote the acquisition, Wu Changjiang persuaded other shareholders to spin off some assets of Enlin Electrical Appliances and established Ensun.

Xu Renjin said that in the long-term planning of NVC Lighting, electrical products have not been listed as key products, and Ensun Electric was sold to concentrate on lighting products. In addition, Schneider and NVC Lighting are strategic partnerships. Some of the products of Enlin Electric have competition with Schneider, which is not conducive to cooperation and the maintenance of the relationship between the shareholders of the company.

analysis

It is a win-win situation for private enterprises to take the top 500 in the world

The world’s top 500 companies cooperate with private enterprises in Chongqing, and Ensun’s acquisition is not alone. In 2009, the wind power transmission technology company of the world's top 500 US GE Group Wind Power Co., Ltd. joined Chongqing Xinxing Wind Energy Investment Co., Ltd. and decided to jointly establish a joint venture to produce wind power gears. Nowadays, the cooperation between Schneider and NVC has also surfaced. However, when it comes to cooperating with private enterprises in Chongqing, the methods used by transnational giants are different.

Professor Zeng Guoping of the School of Public Administration of Chongqing University believes that the cooperation between multinational corporations and local companies in Chongqing is a win-win situation and is in line with the development direction of China's real economy. It can not only achieve the necessary functions, but also help the Chongqing manufacturing industry introduce new ones. Technology and products can promote upgrading and economic development. For multinational corporations, cooperation with enterprises can save costs in terms of early investment, material resources, talents, channel construction, etc., which will do more with less, and help boost their expansion in the Chinese market.

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