The first case is about BenQ's acquisition of Siemens mobile phones. I hope you can give me some guidance!
In view of the above and other objective reasons, BenQ's board of directors passed a resolution on September 28th, deciding not to invest in BenQ's German mobile phone subsidiary. BenQ's German subsidiary also intends to apply to the German government for insol-vency protection and hand over the company's management right, but keep the brand and sales of BenQ Siemens mobile phones. The word "insol-vency" also means bankruptcy, and this procedure is similar to applying for bankruptcy protection.
At present, the number of subsidiaries that BenQ filed for bankruptcy protection in Germany has risen to four, namely BenQ Mobile GmbH &；; Co.OHG), BenQ Mobile Management GmbH, BenQ Wireless GmbH and Inservio GmbH, a seemingly "hundred flowers blossom" wedding smoke finally came to the brink of breaking up.
Siemens holds hands with BenQ.
The history of Siemens mobile phones can be traced back to 1986, when Siemens introduced the first mobile phone-C 1 9kg, just two years after BenQ was born. In 200 1 year, Siemens' market share in China reached 13%, ranking third. In a blink of an eye, in the third quarter of fiscal year 2004 (the quarter ending June 30, 2004), Siemens' mobile phone business suffered losses for the first time, and then it could not be recovered.
Siemens mobile phone was also a big brand.
In 2005, Siemens' mobile phone business contributed less than 7% to Siemens' overall turnover, with a cumulative loss of 5,654,380,000 euros, while its market share fell to 5.5%, ranking fourth after South Korea's LG. In 2005, the mobile phone department of Siemens has become like a dying old man.
On the other hand, although BenQ's mobile phone business entered the mobile phone market on 1994, it was not until the end of 5438+0 in 2006 that it was officially spun off from Acer that it entered the mobile phone market of its own brand on a large scale. By 2004, BenQ's mobile phone shipments had exceeded150,000 units, accounting for 2% of the global market share; But most of them are OEM, and the share of independent brands is limited. However, Li Kunyao, the adventurous boss of BenQ, has been looking forward to the mobile phone industry, and has made no secret of his dream of making it a "flagship product", claiming to increase the annual output to more than 50 million units, showing youthful vitality everywhere.
BenQ is full of energy.
Siemens and BenQ, one is too old and the other is too new, but at that time, it was a good opportunity to combine, so naturally they reached a "transnational marriage".
Marry someone by selling their dowry.
In ancient China, most landlords and wealthy families married women with very rich dowry. Back then, Siemens was regarded as "old money from other countries" and married the mobile phone department to BenQ with a dowry of 250 million euros.
Siemens and BenQ signed the M&A agreement in the field of mobile phone in June 2005. The agreement will include production lines in Kambulingburg (Germany) and Manaus (Brazil), and the German headquarters and marketing agencies will all be transferred to BenQ. According to the agreement reached between the two parties at that time, Siemens will not only fill the debt hole of 500 million yuan out of its own pocket, but also provide BenQ with 250 million euros in cash and services, and buy BenQ shares for 50 million euros, accounting for 2.5% of its shares, and become its strategic shareholder. At that time, I didn't know how many Chinese companies envied such a rich "dowry".
Li Kunyao, chairman of BenQ, miscalculated this time.
At the same time, Siemens has also found a way out for China Business Group: in the future, all kinds of mobile phone business activities in the China market will be carried out in the name of BenQ Siemens Joint Venture, and BenQ promises to make full use of the functions of the original organization set up by Siemens Mobile in China within three years. Siemens' factory in Shanghai is still a research and development and production center. According to the negotiation with the Chinese partner of the joint venture company, BenQ will purchase the mobile phone production of the factory in the next step.
Li Kunyao, chairman of BenQ, said confidently that the new company would turn losses into profits in the fourth quarter of 2006. But a year later, the mobile phone sales of the new company BenQ Siemens has dropped from the first echelon to the second echelon, and its market share has also dropped from the previous 6% to 3%, with a book loss of more than 600 million euros.
The new product can't save Mingxi's fate.
In order to make up for the loss, BenQ even used the "dowry" of 300 million euros given by Siemens. According to BenQ's calculation, if we want to save Mingxi's mobile phone business, we may have to invest another 800 million euros, which makes the stock price drop from NT$ 35 yuan to NT$ 17 yuan, and BenQ, whose total market value has completely evaporated, can't afford it independently. But in fact, today everyone has reached the point of breaking up.
Confusion of merger and acquisition
In the history of world business, there have been many cases of joint venture failure. Because of the dispute of interests, holding and brand, and the difference of strategic orientation, they can't even integrate culture, turn against each other and go their separate ways. In the United States, due to the deficit of $98.7 billion, time warner Inc. Company had to reluctantly delete AOL from its company name in 2003, and the perfect marriage of the century fell through in just three years.
Time has lost.
As we all know, it is necessary to choose an auspicious day for marriage and a date for joint ventures between enterprises. The wedding of BenQ and Siemens was held in June 2005. Is this an auspicious day for BenQ to marry Siemens? That was not the case.
From the end of 2004, Nokia and Motorola paid more attention to the mobile phone market in China, and constantly improved their channels. Local mobile phone companies have lost their survival channel advantage, and their market share has dropped sharply, from half to about 40%, and it has been declining continuously.
At the same time, local mobile phone companies such as Bird, Amoi, TCL and Konka also suffered losses for the first time in 2005. In addition, South Hi-Tech, Panda and Dibit, which were once in the limelight, have also declared bankruptcy, and Japanese mobile phone companies such as Panasonic and Mitsubishi have also failed to withstand market pressure.
In addition, with the implementation of the mobile phone license examination and approval system, more and more enterprises have obtained mobile phone licenses, and there has been a serious situation of oversupply in the mobile phone market, leading to frequent price wars and unprecedented fierce competition in the mobile phone market. China's mobile phone market is in chaos. BenQ and Siemens got married in this war-torn day. Because they didn't make good use of time, the marriage between BenQ and Siemens couldn't find a suitable running-in period, which was doomed to lay a curse for the future marriage.
Does not occupy land.
A happy marriage should be supported by a reliable source of income. How can you still have the heart to fall in love when you are not full? BenQ, as an OEM, has made great achievements in LCD, personal PC and other fields, but after all, it is still relatively young, and has only accumulated several hundred million euros of wealth.
In addition, as early as 200 1, Siemens' mobile phone division had lost 1 billion dollars and was ready to sell the mobile phone division, but it has not found a suitable buyer. Due to lack of funds, BenQ and Siemens have no funds as their "expenses" during the running-in period of their wedding.
In addition, because BenQ has been doing OEM before becoming an independent brand of mobile phones, it cannot achieve cost advantage without mastering core technologies and patents; Although Siemens has some mobile phone patents, compared with Nokia, Motorola and other enterprises, its number and level of patents are not leading and top-notch. Therefore, after their marriage, they are also in a state of patent shortage, and it is difficult to achieve technological leadership, which also delays the launch of new products to some extent.
It is difficult to talk about peace.
Opportunities vouchsafed by Heaven are outmatched by terrestrial advantages, which in turn are outmatched by the harmony among people. Thus, human harmony is the most critical of the three conditions. What about the relationship between BenQ and Siemens?
Cultural differences between East and West are a difficult problem in internationalization.
BenQ Electronics, a Taiwan Province enterprise, has a quick market response and is sensitive to fashion. We can compare BenQ to a young man full of vigor and vitality. Siemens, a century-old German enterprise, has profound German culture, slow response to the market and more rigorous style, which can be compared to a stable old man. It is far-fetched to let a young man marry an old woman. Because of the difference in lifestyle and personality, it is inevitable that he cannot achieve harmony.
After BenQ bought Siemens mobile phones, he sent two Taiwan Province executives to manage 3,000 German employees. Because German employees are conceited and do not obey the management of Taiwan Province Province, it is difficult to carry out the work smoothly, which leads to discord between the senior managers of Taiwan Province Province and German employees. This has led to a series of problems such as new products not being listed on time.
It can be seen that the marriage between BenQ and Siemens is not in harmony with people at the right time and place, so it is difficult to reach a happy marriage. According to statistics, most companies in the world have failed in mergers and acquisitions. Corneal consulting company investigated the top 50 M&A cases during the period of 1990-2000, and found that 69% of them fell behind the average of the same industry in the recovery of the total share price two years after the transaction was completed. Therefore, under the current world economic situation, M&A is not the best choice for enterprises.