The Enlightenment of China's Largest Auto Parts Acquisition Case for Overseas Parts to Date

According to the Economic Information Daily, Beijing Jingxi Heavy Industry Co., Ltd.'s acquisition of the Delphi damping and braking business of the United States has recently been officially signed in Detroit Motor City, which means that China’s largest ever overseas auto parts acquisition has become a success.

Due to the need for bankruptcy and restructuring, Delphi intends to withdraw from its traditional business and package and sell its brakes and vibration reduction business. The acquisition of the above two types of business will bring a lot of benefits to the just-established BWI. First of all, the group of customers who can quickly enter Jingxi Heavy Industries into Delphi, including Mercedes-Benz, BMW, General Motors and other well-known automobile manufacturers. Second, BWI can rely on Delphi's world-leading technology and production experience in braking and suspension systems. Third, establish credibility in the international automotive industry through mergers and acquisitions of global companies.

Delphi held asset delivery ceremonies at 13 suspension and brake business plants and technology centers around the world, and changed its name to "BJ West."

Compared with Tengzhong, Beiqi, and Geely, the famous overseas merger and acquisition pioneers in China, compared with the marathon-style acquisition process, Jingxi Heavy Industry’s “voice” is very small, but the rhythm makes people feel clear-cut, quick and easy to use. “Taobao” from the crisis is not always an easy task. On the one hand, the enterprises that make acquisitions must choose their own acquisition goals according to their own development requirements, their financial technology capabilities, and then make profits with the acquired party. Game and confrontation, but also to compete with other competing parties. On the other hand, whether mergers and acquisitions immersed in a crisis of survival is a potential "treasure", it is really necessary to test whether domestic companies have a pair of "legal eyes." Of course, the overseas mergers and acquisitions of the Chinese automobile industry have experienced a bit of twists and turns and repeated argumentation over the past year. At least, in this merger and acquisition, we have seen that BWI is well-prepared. It understands the development direction of the acquired company and its ability to continue operations, and the rhythm of the game is also relatively accurate, with no more than 9,000. The purchase price of 10,000 US dollars now seems to be a relatively "affordable" bargain hunter. So, this is progress!

In addition, another important aspect of the overseas mergers and acquisitions of auto parts is that integrating the resources of advanced foreign companies will help accelerate the accumulation of technology in China's parts and components industry and contribute to the construction of independent parts and components systems. The advanced autonomous parts and components system enables us to break the monopoly of multinational corporations in order to obtain high profits in the industry chain.

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