Paint industry is now big fish eat small fish mergers and acquisitions or will be normal

China Coatings network
: In the past 2014, affected by real estate regulation,
coatings
of the bulk consumption suffered, the paint industry as a whole showed a depressed situation. With the economy into the new normal, environmental protection policy plus code, the introduction of consumption tax,
coating enterprises
living space is shrinking day by day, mergers and acquisitions occur frequently. According to incomplete statistics, there have been at least 20 mergers and acquisitions in the paint industry so far in 2014. With the increasingly white heat of the paint market competition, the phenomenon of big fish eating small fish in the paint industry may gradually become normal. The reasons for this are as follows:
1, in standing in the mouth of pigs can fly up the golden decade, the paint industry experienced crazy growth. The entry of a large amount of foreign capital has contributed to the development of the coating industry, many paint enterprises in order to earn more profits, have expanded production capacity, leading directly to the current paint industry overcapacity.
2, affected by the real estate market, the reduction of bulk real estate consumption, paint sales have been greatly affected. The introduction of the new environmental protection law and paint consumption tax, invisibly increased the cost of coating enterprises, squeezing the profit margins of enterprises, leading to increased competition, the industry into a squeeze development. This is the best time for high-quality coatings companies to achieve low-cost expansion and acquisition.
3, China's huge market space attracted a large number of foreign capital into. And with a sound management system, sufficient funds of international paint enterprises to enter the Chinese market is the best means of mergers and acquisitions. The acquisition of small and medium-sized Chinese paint companies makes it a production and research and development base in China, with the help of this pedal into the Chinese paint market.
, mergers and acquisitions can be divided into three categories: First, mergers between paint companies, including "eat small" and "small and medium-sized alliances"; Such as Haihong old man to buy the Netherlands Schaepman, the second is the paint upstream and downstream mergers and acquisitions to achieve industrial integration; such as Libang's acquisition of Xiuper; Third, cross-disciplinary industrial diversification. To a certain extent, mergers and acquisitions to resolve excess capacity, optimize the structure of the industry, enterprises through mergers and acquisitions to achieve the integration of resources, for enterprises to become bigger and stronger laid the foundation, it is a wise choice.
with the increase of competition in the industry, big fish eat small fish events in the paint industry will also be staged, mergers and acquisitions or will be normal. The ultimate goal of enterprises is to maximize profits, mergers and acquisitions provide good conditions for them, and the final mergers and acquisitions may lead the coating industry into new development space.