"Chairman Zhao, judging from the information, now is indeed a good opportunity to acquire the Volvo Group!" Zhou Huicheng said excitedly.
Zhao Ye smiled and nodded.
In its previous life, the Volvo Group weathered a crisis by selling its Volvo Cars division to the Ford Group.
But now, it's unclear whether Volvo Group has contacted Ford.
Regardless, Wujiang Group can use money to force Volvo Group's shareholders to submit.
However, the most crucial question is whether the acquisition of the Volvo Group will receive approval in Europe…
However, given the rare opportunity, Zhao Ye decided to try to acquire the Volvo Group. If the acquisition was successful, it would elevate Tiangong Technology's position in the automotive industry.
In addition to Volvo Group's automotive division, Zhao Ye also had his eye on Volvo's truck, bus, and construction equipment divisions.
China is currently in a period of rapid economic development, and the truck and construction equipment sectors are quite crucial.
“Chairman Zhao, Volvo Group’s market value is approximately $15 billion. If we want to acquire it, we will inevitably have to pay a premium, perhaps $20 billion to $25 billion,” Zhou Huicheng said in a deep voice. “Moreover, the West is not very friendly to us and may not approve our acquisition plan!”
“Do your best!” Zhao Ye thought for a moment and continued, “You can promise Europe that if Tiangong Technology’s acquisition of Volvo Group is approved, Wujiang Group will increase its investment in Europe!”
Wujiang Group has many investments in Europe and wields considerable influence.
If investment is used as bait again, many European countries should be able to vote for the Wujiang Group.
In two or three years, it will be 1997, when the Asian financial crisis will break out. In Zhao Ye’s view, this financial crisis is almost unavoidable, mainly because the financial systems of Asian countries are too fragile and the balance of payments is unbalanced.
For example, there's the issue of unregulated credit booms. Indonesia, Malaysia, the Philippines, and Vietnam all experienced credit booms in the 1990s. While these booms boosted short-term economic growth, they also increased the economic growth's sensitivity to credit. Consequently, both asset price fluctuations and currency depreciation severely impacted their banking systems.
As Indonesia and Thailand were forced to declare free-floating exchange rates due to nearly depleting their foreign exchange reserves, the rush by businesses and financial institutions to purchase risk hedges for their exchange rate exposure further exacerbated the depreciation of currencies in various countries.
Wujiang Group must flee before the Asian financial crisis erupts.
The excess funds can be invested in the European market.
Currently, Britain is implementing a privatization policy, which undoubtedly gives Wujiang Group an opportunity to swallow up British companies!
Zhou Huicheng's face lit up with a hint of joy. Hearing Zhao Ye say this, he knew that Zhao Ye was very determined to acquire the Volvo Group, and he himself also hoped to acquire the Volvo Group to strengthen Tiangong Technology's automotive business.
"Okay, Chairman Zhao, I will arrange for the acquisition team to go to Europe as soon as possible!"
...
A week later, Zhou Huicheng assembled a professional acquisition team to represent Tiangong Technology Company in Sweden.
Upon arriving in Sweden, he went straight to the point with the Volvo Group, expressing his desire to acquire them.
Fan Boming, head of the acquisition team, said, "In recent years, the Volvo Group has suffered setbacks and encountered a major economic crisis, making it very difficult to overcome. Our Tiangong Technology Company is willing to invest heavily to acquire the Volvo Group, and we hope you will give it serious consideration!"
The Volvo Group employees looked at each other in bewilderment upon hearing this.
Volvo Group is indeed facing problems, but it's still a long way from being sold off.
Moreover, Volvo Trucks' business in Europe is second only to Mercedes Trucks, and it has great potential for growth.
Before anyone could speak, Fan Boming continued, "Our company is willing to offer $20 billion to acquire the entire Volvo Group!!!"
Upon hearing this offer, everyone at the Volvo Group was taken aback.
"The other party is really rich and powerful, offering a $5 billion premium on Volvo Group's market value right off the bat!"
"Is the Volvo Group really worth that much money?" Many Volvo Group executives themselves are not very optimistic about Volvo. This is because Volvo Cars, the Volvo Group's largest business, is performing very poorly, causing the Volvo Group's market value to plummet.
In their view, the group's financial shortage makes it difficult to revive Volvo's car business.
In order not to affect the group's other businesses, they even considered selling the Volvo car business to revitalize the group's other businesses.
“Mr. Fan, I will report Tiangong Technology’s offer to the board of directors. We will notify you immediately as soon as we have any news!” said Volvo President Gary Mathilda.
“Okay, Mr. Matilda, then we’ll take our leave. Contact me again if you have any news,” Fan Boming said with a smile, then stood up, shook hands with Gary Matilda and the others to say goodbye.
After Fan Boming and others left, Gary Matilda immediately reported to the board of directors that Tiangong Technology Company wanted to acquire Volvo Group.
That evening, Volvo Group held a board meeting to discuss whether to accept the acquisition by Tiangong Technology.
Volvo Group Chairman Derek Max looked at everyone and asked, "What are your thoughts?"
A director named Benson Sander said in a deep voice, "I do not recommend selling the Volvo Group. Apart from Volvo Cars, which is suffering heavy losses, our truck, bus, and construction equipment businesses are doing very well! So, if we have to sell, we can sell off Volvo Cars, which is a hot potato. If we keep Volvo Cars, it is very likely that it will drag our entire Volvo Group down!"
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