·The demand in the automotive industry is slowing down, and the tide of dealer mergers and acquisitions will

·The demand in the automotive industry is slowing down, and the tide of dealer mergers and acquisitions will

Affected by the slowdown in the overall demand of the automotive industry, auto dealers have seen a new wave of mergers and acquisitions. Yesterday, Guanghui Auto said that the company had issued a tender offer to Baoxin Auto. If the acquisition is successful, this will be the largest merger between car dealers in recent years. Some insiders said that due to the current losses in car dealers, most companies have to seek transformation or new profit channels. It is expected that more car dealers will join the merger and reorganization in the future.

Tender offer to acquire Baoxin Auto

According to the announcement issued by Guanghui Auto, the company has already issued a tender offer to Baoxin Auto and signed an agreement with Baoxin Auto. According to the agreement, Guanghui Auto has paid a refundable amount of HK$50 million to Baoxin Auto. Sincerity gold.

It is understood that Guanghui Automobile is currently the number one passenger car seller in China. In 2014, Guanghui Auto achieved revenue of approximately 86.4 billion yuan and new car sales of 572,000 units. As of last year, Guanghui Auto had 482 stores in 23 provinces across the country, distributing more than 40 passenger car brands. Baoxin Auto is a representative of domestic high-end luxury car brand dealers. Its main business is BMW, Porsche, Ferrari and other luxury car brands. Among them, Baoxin Auto is also the largest BMW dealer in China.

Although the specific acquisition plan has not yet been announced, in the view of Cui Dongshu, secretary general of the National Passenger Vehicle Market Information Association, the move of Guanghui Auto is to expand its automobile brand distribution field and region.

According to the data, the brand and service outlets of Baoxin Auto are mainly distributed in the Yangtze River Delta with rich economy, dense population, huge market potential, old industrial bases in Northeast China, and vast areas such as East China and North China. Mainly concentrated in the southwest or northwest.

Some sources also said that Baoxin Auto reached a preliminary agreement with Guanghui Auto in the tender offer because Yang Aihua, the founder, executive director and chairman of Baoxin Auto, would concentrate on doing his car street. He chose to sell this time. The equity of Baoxin will be the best opportunity, which is called “late retreat as early as early”.

Not a case of industry

It is understood that in the first half of this year, the automobile dealer industry has seen mergers and acquisitions between enterprises. According to the data, at the level of domestic large-scale automobile dealers, this year, real estate giant green land holding (14.20, -0.79, -5.27%) Rundong Automobile And Zhongsheng acquired 7 Shandong stores, and Yuantong acquired and Chengcheng.

Some insiders said that many auto dealers have merged and reorganized, mainly due to the weak overall demand of the auto industry. Car dealers are not doing well at the moment.

According to statistics from the China Automobile Dealers Association, the loss rate of auto dealers in the first half of 2015 was as high as 70%, and many small auto dealers around the country had closed down and closed stores.

Automotive expert Zhang Zhiyong also said that the emergence of new formats such as the downturn in the auto market and the industry "Internet" forced auto dealers to solve the current loss situation through transformation or seeking mergers.

Reproduce the tide of mergers and acquisitions

For the current mergers and acquisitions in the auto dealer industry, Zhang Zhiyong believes that with the downturn in the auto market, more and more large auto dealers are looking for new ways, and more auto dealers will join the merger or reorganization in the future. The ranks.

According to the data, the wave of mergers and acquisitions of auto dealers is not the first time. As early as 2011, there has been a large-scale merger and reorganization, including Guanghui Auto, Huge Auto Trade, Liantuo, Yaxia Auto and other well-known domestic auto dealers. Acquisition of car sales service companies in multiple regions.

Industrial Securities (7.83, -0.23, -2.85%) analysis believes that large-scale mergers and acquisitions in the automotive industry will occur at the bottom of earnings or profitability. In 2010-2011, there was a wave of mergers and acquisitions in the auto dealer industry. At that time, because the profit peaked and the leading companies listed on the expansion map, the merger and acquisition tide was due to the bottom of the industry profit, and some dealers chose for capital, management or strategic considerations. Withdrawal from the market, for listed companies, it is currently the best time window for capitalization, management, and scale advantages to integrate the market at low cost.

In addition, regarding the specific reasons for Guanghui Auto's acquisition of Baoxin Auto and its next plan, the relevant person in charge of Guanghui Automobile told the Beijing Business Daily that all the announcements are currently based, and other temporary disclosures are not convenient.

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