From the foreign mergers and acquisitions to see the future acquisition of China's paint industry.

In recent years, with the global economic environment downturn, population dividends, market demand decline, resulting in a sharp decline in the profit margins of enterprises, small and medium-sized
coatings
more reluctant to invest in technology research and development more human resources, resulting in the domestic paint industry product innovation is insufficient, product homogenization is becoming increasingly serious. In addition, under the influence of the external economic environment, small and medium-sized
coating enterprises
in order to occupy a place in this economic crisis, they began an unprecedented "price war", in line with the "who can be lower than me" price "advantage", expand their "territory" Although this extensive way of development can achieve a part of the enterprise, but is not a long-term solution, from the current domestic paint industry development status quo, in the future development of the paint market, mergers and reorganization is the paint industry must go the way, the future thinking should be more than much, but refinement.
in the economic situation is not good background, paint enterprises tend to strong union, make up for each other. According to incomplete statistics of China Coatings Procurement Network, in the first half of 2016, there were dozens of acquisitions and acquisitions between international paint companies, such as Xuanwei's wholly-owned acquisition of Weisberg Industrial, Construction, Packaging Coatings and other businesses for $9.3 billion, and AkzoNobel's acquisition of 475 million euros. BASF's
Industrial Coatings
business, Uttar Pradesh's $3.8 billion acquisition of the aero-chemical coatings additives business, and Libang's acquisition of the remaining 49% of the remaining 49% of the company, mainly
Automotive Coatings
, made it a wholly owned subsidiary of Libang.
merger and reorganization between enterprises, the ultimate goal lies in the improvement of strengths and weaknesses, strong joint and common development. This, foreign-funded enterprises have advantages, from the above cases we can see that foreign-funded paint enterprises in the process of merger and reorganization is not a full acquisition, but a selective acquisition, only for a business sector to investigate and negotiate. This acquisition model is more rational, and the effect of resource integration is better.
and relative to the merger and reorganization between foreign paint enterprises, domestic paint enterprises are inferior. According to china's paint procurement network observation, in recent years, the merger between domestic paint enterprises, the commercial atmosphere is very strong, we often put the interests in the first place, never consider the acquisition, the contact between enterprises, production technology breakthrough, management optimization and improvement issues, we pay more attention to the acquisition, how much money can be earned?
in Chinese consciousness of the "money is 10,000, no money is 10,000 can not", for this logic, we can only ha ha a smile. But at present, in this kind of thinking, some paint enterprises began to cross-industry acquisition, this blind acquisition model is even more taboo. Such as the domestic automotive coating industry leader Shanghai Jinlitai Chemical Co., Ltd., according to China Paint Procurement Network understand that Shanghai Jinlitai since the second half of 2015 so far, with Asda and other international enterprises jointly set up a production base and research and development center, can be described as a drastic. However, a recent acquisition gave Shanghai Jinli Taibo a bit of cold water. Recently, Jin Litai (300225) recently proposed to acquire 100% equity in seven companies, such as Haben Information, Guiyu Information and Light-by-Light Information, which together hold a 63.57% stake in silver orange media (830999) of the new three-board company. After months of negotiations, it failed.
Though there is nothing wrong with the failure of mergers and reorganizations between paint companies, there is indeed a great deal of risk in this blind cross-industry acquisition, which also gives some experience to mergers and acquisitions among other paint companies in the future.
has become the main theme of China's domestic capital market. In the merger and acquisition, enterprises can not only focus on immediate interests and ignore the long-term planning, can not just play the capital market game, and do not abide by the rules of the game. We need to better integrate our resources, capabilities and technology in our mergers and acquisitions. In the concept of mergers and acquisitions formed by many years of practical experience, we can draw the conclusion that mergers and acquisitions purely by addition are not sustainable, and mergers and acquisitions between enterprises must be based on industrial pattern and strategic planning in order to achieve the multiplier effect of integration and synergy, in order to achieve the foundation industry evergreen. As the saying goes: "Teacher Yi long skills, self-improvement."
, the domestic macro-economic downturn in the environment, paint market demand is still declining. Therefore, this strong joint, long and short will be the future development of the paint industry's main trend. In merger and reorganization, merger and acquisition is only a way to integrate resources, but it is not a means of profit. Many companies tend to go the other way when it's mergers and reorganizations. So how to better integrate industry resources is still a problem that the coating industry needs to study in the future development.