National paint companies as acquisition targets of foreign capital.

<p> 2009 年 12 月 30 held a State Council executive meeting on the use of foreign capital in China next made a clear deployment.. Will encourage foreign investment and mergers and acquisitions of domestic enterprises involved in the reorganization and transformation and mergers and .acquisitions.. There is no doubt that mergers and acquisitions, in particular, reports of foreign capital flooded the financial media this year a number of important pages.. The last few days in 2009, thrown out of the topic was aroused by the Chinese coating .industry is so widespread concern, not fashionable for some reason, but behind the serious economic issues.. Paint from China nearly a decade of growth process point of view, growing up in China when the paint had a chance to usher in the WTO, foreign .companies rushed into making domestic paint surprise.. </ P> <P> <P> <p> course, the growth stage of the tender face of the seasoned international business is not surprising.. Resources in the past has .not been holding foreign Valspar paint giant has been working with well-known foreign brands of Dulux paint, Nippon expand competition in the market, though it was not they strive Resources in the contest, but only temporarily by the market opportunities, not. the same .stage with the multinational companies that have the strength.. Rapid growth followed up Carpoly, Tai Po, Bauhinia, the United States Tu disabilities, and who spent heavily in the recent advertisement in the CCTV as the king of the three trees marked national paint companies .such as none of Dulux, the state legislature and other foreign brands have caused. influence of the encirclement.. Industry was pessimistic estimates of national paint companies in China face fierce competition from foreign companies, the paint industry will be like the camera industry, become .a recognized national brands without global industry.. </ P> <p> foreign capital to support national paint companies were facing exams </ p> <p> why the national paint companies to become acquisition targets of foreign investment? .. </ P> <p align="left"> foreign-funded enterprises, a no shortage of funds, the second is no shortage of management, the three no shortage of technology, the only missing is the sales channels .and networks.. We see that previous cooperation Carpoly Valspar and would like to take channels, but that seems to be ineffective.. So there was the acquisition of China Resources, which also happen to have the Resources time to network health.. October 2005 ., the world's coatings giant Akzo Nobel Coatings acquisition of Guangzhou has more than Ted because of this willingness.. Secondly, the financial crisis once again raised the importance of reducing costs, "we intend to paint product promotion Resources rapid development of the global coatings .market.. "From Valspar President and CEO WilliamMansfield this sentence analysis, the advantages of CR may be using oil paint Valspar products worldwide network of exports, which has the advantage that can reduce production costs, China Resources as a foreign. processing and production .base.. </ P> <p> from mergers and acquisitions itself, the wisdom that is different from previous extensive use of paint manufacturing enterprise investment requires a lot of land for factories, China's domestic M & A national paint companies are characterized .by very little need to expand. land, as long as the existing plant to transform, upgrade management, changes in product upgrades, we can achieve the purpose of investment.. Therefore, in the present tense situation of land, foreign mergers and acquisitions the .way the Chinese national enterprises to become very feasible.. In fact, foreign mergers and acquisitions in China in the national paint companies there is great potential.. </ P> <p> national paint industry situation is not optimistic </ .p> <p> statistics, the 2008 financial crisis, the Chinese paint profitability of the business decline, loss and further expanded in the coatings industry, the majority of foreign profits. All paint companies and joint ventures, domestic enterprises can not compete with .them.. The Chinese government encourages foreign investment in the form of acquisition, transformation and restructuring of domestic enterprises in the merger and reorganization of the news was announced, no doubt to the people in the eyes of the Chinese national paint industry cast a shadow over .prospects for the development.. Based on the situation worse, some industry insiders believe that ethnic enterprises not only to face continued price pressure on raw materials in recent years, multinational companies and the face of international pressure on technology and price competition, some of the .domestic paint industry overwhelmed.. Not yet mature in its own case, the local national paint companies is very dangerous.. </ P> <p> According to incomplete statistics show that even in the 2009 economic downturn, the Chinese paint production .or as high as 900 million tons, the enormous development of the Chinese paint market makes room for increased foreign investment in China ... Akzo Nobel, Nippon of Japan in China have established a strong position in the market, the new US factory in Zhaoqing .Xuanwei has been put into operation in the north of Germany have opened Fang paint market in China now world's biggest. Paint multinational companies have entered the domestic market.. At present, how to survive under strong foreign pressure and the development of China's national paint companies .urgently needed study.. </ P> <p> coatings industry how to interpret the policy to encourage foreign M & A?. </ P> <p align="left"> State Council executive meeting has .decided to expand the open field, to encourage foreign investment and mergers and acquisitions reorganization and transformation of enterprises in the Mainland and mergers and acquisitions, foreign investment and broaden domestic financing channels.. Financial crisis has not dissipated in the context of how China's coating industry .to look at this foreign capital in the new policy?. </ P> <p align="left"> the global financial crisis, some Chinese enterprises have to go out to overseas acquisitions, but due to lack of experience ., including mergers and acquisitions on the international market are not familiar with the rules, pay a lot of. tuition; In addition, although the "Made in China" for the world to provide consumers with affordable consumer goods, but after all we in .the international market to a limited number of brand-known, but a large number of product processing or OEM. lack of capacity for independent innovation.. So, This time encourage foreign mergers and acquisitions, one important aim is to promote Chinese enterprises through mergers .and acquisitions to further improve the governance structure and improve the international competitiveness of the market.. This is the national paint companies in China is especially important.. At the same time, from the observation that the paint industry in recent years, although, as .Akzo Nobel, Sherwin paint and other foreign multinational companies in the global crisis despite the injured, but the paint market in China is still achieved good growth.. After all, they are more mature management experience and advanced production technology, if they have the ability .to invest in China, then China's coatings business technology innovation and system innovation, the promotion of national enterprises to improve technology and R & D capacity, and economic restructuring. and upgrades are helpful.. </ P> <p align = " .; left ">, of course, but also recognized that foreign capital to China National Coatings business development risks and negative effects.. After all, foreign capital is coming into good, subjectively, not a competitor for their manufacture, so as long as .possible, when mergers and acquisitions by foreign investors in the implementation of the general industry leaders will take the so-called "decapitation" strategy, which has in recent years. cases are similar to China's national enterprises to provide a paint can refer to the .lesson.. In short, the wisdom of that with the accelerated development of economic globalization, China's paint market with the world paint market integration and interaction will be deepened.. In this process, not the government to encourage foreign investment under the influence of mergers .and acquisitions shouted "Wolf! ..". In fact even if the wolf really came, in addition to stop and consider the acquisition of win-win situation, effective control by foreign capital, China's national paint companies need more business development to .speed up and realize the true self!. Now, we can foresee is: national paint companies is about to begin a new round of consolidation, national brands go, this is a responsibility of every Chinese should be thought.. </ P> .<p> Background: </ p> <p> State Council executive meeting pointed out that promoting the use of foreign diversification.. Encourage foreign investment and mergers and acquisitions of domestic enterprises involved in the reorganization and transformation and mergers and acquisitions ... Accelerate the establishment of small and medium enterprises by foreign security company pilot.. Broaden the financing channels for enterprises with foreign investment within the territory, and guide financial institutions to continue to increase credit support to enterprises with foreign investment; deepen the foreign investment .management system.. Comprehensive clean-up matters related to foreign investment approval, minimizing approval, approval of scope to increase the transparency of the approval; create a favorable investment environment.. Regulating and promoting the development zones, to speed up border economic cooperation zones ... Improve foreign exchange management enterprises with foreign investment, simplify procedures for settlement of their foreign exchange capital.. </ P>..