Last week, the bankruptcy of Japan's well-known auto airbag supplier Takada was the focus of the market. Subsequently, the Chinese owner of the American buyer also became the focus.
Japan's largest bankruptcy case
On June 26, Gao Tian, ​​who was deeply troubled by an airbag recall, filed for bankruptcy protection with the Tokyo District Court. The 21 overseas subsidiaries of the world also went bankrupt. The Tokyo stock exchange decided to delist Takata stocks from the market on June 27.
"Car Airbag Recall" has been entwined by Takata for nearly ten years. Due to its unfavorable response, Japanese companies with more than 80 years of history have finally become overwhelmed. It is said that the scale of the debt exceeded 10 billion U.S. dollars, setting a record for Japan's manufacturing bankruptcy after World War II. As a result, this bankruptcy became the largest manufacturing bankruptcy case in the history of Japan.
Takata accounts for 20% of global airbag market share, ranking second in the world, second only to Germany's Autolif (30% market share), and long-term stability with many automakers such as Toyota, Honda, Ford, and BMW. The cooperative relationship was once recognized in the industry as a "symbol of security."
In fact, Gao Tian’s ultimate bankruptcy is not particularly surprising. In recent years, Takada's airbags have a large number of safety problems. The use of airbag inflating materials will cause explosions if they are exposed to high humidity and high temperature for a long time, causing metal fragments to fly to passengers in the car. It has caused 17 deaths and more than 100 injuries worldwide.
Takata Corporation, founded in 1933, was once hailed as "a symbol of security." Earlier, Takata was mainly engaged in the textile industry and used weaving techniques to produce lifelines. In 1960, the first two-point seatbelt was developed and started to gradually emerge in the field of safety spare parts. Then Takata officially began production of airbags in 1987, ranking the world's second largest manufacturer of automotive safety products.
The "Japan Economic News" commented that an old-fashioned manufacturing company with an 84-year history formally withdrew from the historical stage, leaving the market with regret.
The airbag problem was reported as early as 10 years ago, but Takada's delay in giving priority to it was mainly due to the Japanese-style management system that relied on large companies and lacked awareness of consumers and crisis. This is also a common problem in many Japanese companies.
Takata's bankruptcy will cause a chain reaction, causing the deterioration of the performance of other large auto parts subcontractors, and even triggering a decline in employment in some parts of Japan. Japan's Minister of Industry and Trade Mr. Shigeo Hiroshi said that the Japanese government has issued instructions to start a guarantee system for small and medium-sized enterprises trading with Takada, provide working capital, and prepare temporary support for these companies at any time to prevent a vicious cycle of bankruptcy.
U.S. buyers surface
On the same day, the American Bailey’s Auto Safety System (KSS) announced that it had reached Takadan's intention to purchase assets after bankruptcy. KSS is one of the world's top suppliers of automotive safety systems and will acquire Takata's main businesses for US$1.6 billion, including seat belts and child safety seats. The two sides have signed the Memorandum of Understanding.
According to the report of the 21st Century Economic News, the transaction is aimed at Takada's bankruptcy assets, so it can avoid related debt and litigation risks. KSS purchases assets and pays it to Takata's bankruptcy management committee to handle compensation and litigation. The subsequent handling of airbag recalls is not related to new buyer KSS. This allows KSS to concentrate on developing business.
With the frequent occurrence of Takata accidents and the continuous recall of airbags, the market landscape of automobile safety has also changed.
The customers that Gaotian lost are facing the encroachment by other three major automotive safety system providers, Autolif, Trina, and KSS.
In 2016, KSS's performance has been developing very well. It has obtained nearly 5 billion U.S. dollars of new orders and has opened up more projects and customers. If the merger is successful, the whole production capacity of KSS will be great with the help of Takata's global plant and facilities.
KSS will next sign relevant agreements with 14 vehicle manufacturers to ensure the risk isolation from Takada airbag recall events and the sustainability of future orders. These companies include major automobile manufacturers in Japan, North America, and Europe, such as BMW, Mercedes-Benz, Volkswagen, Ford, General Motors, Toyota, Honda, and Nissan.
Of course, whether the final agreement can be signed depends on the company's follow-up due diligence and negotiations, and it needs to reach agreement with the world's 14 major automobile manufacturers and the Takata Bankruptcy Management Committee, so the tender offer still has variables.
Forced to open the door of the world
Then came the KSS parent company, China Junsheng Electronics. Ningbo Junsheng, just in February of last year, issued a 6 billion yuan bid for KSS, the American car safety system. Belize is the fourth largest automotive safety system company in the world. It is smaller than Germany's Autolif, Japan's Takada, and TRW TRW. It is one of the top 100 auto parts companies in the world. The merger was successfully passed in June last year. And on the day of the successful acquisition of Bally, both teams won't leave a chance to breathe, and announced that KSS will participate in the acquisition of Takata airbags.
According to the "Jun Lin" public account, the world's most powerful and closed car ecological chain is about to break into a barbarian.
The global auto industry has been firmly controlled by the top three in Japan, Germany, and the United States. According to the "Global Auto Parts" list of the top 100 auto parts suppliers in the world, among the 100 companies listed in 2016, Japan, The United States and Germany have a total of 73 companies and are in a monopolistic position.
The Japanese ecosphere is the most closed. With the acquisition of Takata Airbags by subsidiaries, Junsheng Electronics will have an opportunity to enter such an ecosystem.
This world will always retain new opportunities. Although Autoliv of Sweden is eager to participate in the acquisition of Takada, it will become the absolute monopoly of the safety system after its acquisition of Takada with its world’s 30% share, which is the most invisible to any auto OEM. The situation.
As a result, the opportunity was left to the fourth youngest Gabriel. Pali's annual revenue is only US$1.5 billion, less than one-third of Takada's revenue. However, the subtle situation has made Pelize a potential candidate for bidders.
Now, Gabriel’s mergers and acquisitions with Takada are in the best position and timing. If you can eat Takata, Jun Sheng Electronics' business scale will reach 8 billion U.S. dollars, and it will be close to the world's number one Autoliv in terms of security system share. This is the best opportunity for Junsheng Electronics to improve its global supply chain. Its customer channels will cover all global automotive companies. More importantly, this will be able to break into the deepest barriers to the Japanese car market. This point made the merger and acquisition case meaningful.
This local company, founded in 2004 and having a life span of less than 13 years, has created a technology acquisition road to expand international rivers and lakes.
Junsheng Electronics is an auto parts supplier headquartered in Ningbo. It achieved revenue of approximately RMB18.6 billion in 2016, an increase of 130% over the same period of last year. The most noteworthy is its fierce international offensive. The company has successively acquired the automotive electronics company Preh PREH, the German robot company IMA, and the German QUIN in 2011, and entered the car safety through the merger and acquisition of KSS and the German TS (now PCC) in 2016. And car networking.
In the automotive industry, the largest symbol of industrial civilization, Junsheng Electronics is seriously entering the top ranks of automotive components. Its sophisticated international M&A strategy may be the fastest way for China to become strong.
Wireless-Wifi Repeater,Wifi Extender,Wifi Range Extender,Best Wifi Extender
Shenzhen Jinziming Electronic Technology Co.,LTD , https://www.powerchargerusb.com