Recently, the biggest news in the LED lighting industry is that the three-party joint investment team such as Mulinsen (hereinafter referred to as “Mullinsen Consortiumâ€) acquired the transaction of Land Vance (LEDVANCE, OSRAM light source business) for 400 million euros, which means that it is in the industry. A wave of cross-border acquisitions has slammed the key hammer, and a number of twists and turns of acquisitions have come to an end.
As soon as the news came out, industry veteran Peng Yinshui bluntly said: "First of all, I would like to congratulate Mulinsen on the successful merger, but the road is still far away?"
Osram is in the baggage
For this cross-border acquisition, Peng Yinshui believes that it needs to be more rational to look at. "From the perspective of a variety of information, including disclosures, in fact, the most valuable and most valuable business is still in the hands of Osram. Osram is selling its 'baggage' business this time. Actually it is in the 'package', for the acquisition It's not cost-effective for businesses," he said.
Peng Yinshui told reporters that the above viewpoint was further confirmed when he communicated with the insiders of Osram China. "They also believe that the sale to the Mulinsen consortium is basically a traditional business. Although there is a part of the LED lighting source, this part is basically a foundry in China. It can be said that the sale part is a fierce competition, basically no Too high value-added business."
No long-term international brands available
According to the agreement between Roundmans and OSRAM, the former will continue to use OSRAM and the SYLVANIA brand at the product level, but there is a key issue that is not mentioned: the age of the OSRAM brand, including The brand of Xiwannian is not used for a long time.
“What I learned before is that the OSRAM brand can only be used for 10 years, but according to OSRAM internal staff, it seems that Landewans uses the OSRAM brand for only two and a half years and will not exceed three years. If so, the value of this merger. Worse." Peng Yinshui does not hide his optimism about it.
He further said that it would not be as good as Lenovo's acquisition of IBM. It used the five-year IBM brand and finally changed into Lenovo's own brand. As a result, many consumers in the international market still can't recognize new brands.
“If the North American Xiwannian brand can be used for a long time, it may be worthwhile. Because Chinese companies or other foreign companies enter the US market, American companies will adopt some local protectionism. They first sue you first, then you cannot sell in this country. However, the Xiwanian brand is different. If there is a certain foundation in this country, they will easily reach sales."
Peng Yinshui also learned from Osram's internal staff that it is not possible to use Osram's logo when using the Osram brand in Roundmans. It is necessary to have both Osram and Roundmans brands. In other words, when Mulinsen acquired Landwells to use the OSRAM brand, both brands of Osram and Roundman must be placed on top of it.
An imperfect acquisition?
For this merger, Peng Yinshui is conservative and pessimistic, and does not think this is a good acquisition.
In Peng Yinshui's view, the parties are shunning the outside world and describing some information that is conducive to their share price. "At most, the stock price can rise to a certain extent in the short-term, and there is even a possibility of skyrocketing. Most investors are irrationally thinking that they have acquired a big cake, but people who are really rational should go deep into this matter."
“With Osram throwing out the traditional general lighting business, the performance of this business is definitely going down, and in the process of declining, some of the returns that will eventually be seen will definitely get lower and lower. From Mulinsen In the case of the consortium acquisition, I think that more may be the concept of speculation, in order to raise the stock price." Peng Yinshui said.
He further pointed out that there is a considerable sales data that can push Mu Linsen to the third place in the world, but this number must be viewed dynamically. It is a process of decline, and it is difficult for Mu Linsen to stabilize it. "This acquisition I understand the subject matter is more important than reality!"
During the interview, Peng Yinshui repeatedly stressed that “the life of the brand is the most important and most important. The transaction is worth 400 million euros. If the content is not expensive, but there is no brand life, I understand the most. It is not more than 10 years in a long time, and it is unlikely that it will be more than two and a half years according to the employees inside OSRAM."
Peng Yinshui said that such acquisitions abound, and the number of years of use and some relatively core technologies, some companies are still in the scope of acquisition. "However, Mulinsen did not actually acquire the core business of Osram this time. It is purely a part of the business that people have to abandon or think that there is no added value. The only value that may be worth is the Xiwannian North American market.
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