The other board members nodded in agreement.
"Tiangong Technology is a subsidiary of Wujiang Group; they have plenty of money. We can sell Volvo Cars for a good price!!!"
"China's automotive industry is very backward. Tiangong Technology wants to enhance China's car manufacturing technology by acquiring Volvo Group. We can ask for an exorbitant price and make a fortune!"
Chairman Derek Marks shared the same thoughts as everyone else.
So he immediately made the decision: "Since everyone agrees, then we'll send someone to confront Tiangong Technology and agree to sell only Volvo cars!"
...
Fan Boming was having a video call with Zhao Ye at the hotel.
Fan Boming said, "Chairman Zhao, based on my experience, the Volvo Group won't easily accept a complete acquisition. The most likely scenario is that they will choose to sell the underperforming Volvo Cars..."
Zhao Ye frowned slightly upon hearing this.
Volvo cars alone are not enough for me.
"Money can move mountains. I don't believe that Volvo Group's shareholders won't be tempted by throwing money at them! When you negotiate, you must be firm and insist on selling the entire Volvo Group to Tiangong Technology Company as a package."
Ford spent over six billion dollars to acquire Volvo Cars, and then lost money.
Zhao Ye couldn't guarantee that Tiangong Technology would immediately turn a profit after the acquisition; it would take time to develop new vehicle models. Moreover, Zhao Ye highly valued the truck, bus, and construction equipment businesses.
Wujiang Group has made huge investments in the logistics and construction industries. By acquiring Volvo Group, it can produce and sell its own products, saving a lot of costs.
Therefore, he would rather spend a high price to acquire the entire Volvo Group than buy a Volvo car company separately.
“Okay, Chairman Zhao, I understand what you mean. Please rest assured, I will do my best to persuade Volvo Group to agree to our acquisition plan!” Fan Boming said.
"Okay, that's settled then. You guys get some rest, I'm hanging up now!"
"Okay, goodbye Mr. Zhao!"
...
The following morning, Volvo Group contacted Fan Boming.
Fan Boming and his negotiation team returned to the Volvo Group headquarters.
At the negotiating table, as soon as the two sides were seated, Volvo Group President Gary Matilda spoke up: "Mr. Fan, before we begin the negotiations, I would like to convey to you the decision of the Volvo Group Board of Directors."
Fan Boming nodded, signaling the other person to continue.
Gary Matilda stated, "Following discussions by the board, it was unanimously decided that the Volvo Cars business, a subsidiary of the Volvo Group, can be sold to Tiangong Technology Co., Ltd..."
At this point, Gary Matilda hadn't even finished speaking.
Fan Boming suddenly interrupted, "Wait, Mr. Matilda, our Tiangong Technology Company is acquiring the entire Volvo Group, not just Volvo Cars. If you are not satisfied with our offer, then we can continue to negotiate. Price is not a problem. How about $21 billion?"
(End of this chapter)
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