Man Group's new CEO to go to China to discuss cooperation with China Heavy Industry to increase capital and expand shares

Pachetta and Ma Chunji passionately shake hands.

After the cooperation agreement was signed for more than a year, on the 26th of August, the new CEO of the Group, Pachta, came to Beijing for the first time. He released a strong signal seeking to deepen cooperation. Pachita Weighing has already become part of Man, and its future business scope may extend to China Card, and even consider increasing its shareholding ratio by 24%.

Expected to expand cooperation

“We are very likely to increase capital.” At the Westin Hotel, facing the reporter’s questions on “Is Man Group’s plan to increase capital investment in Sinotruck?”, the first Mann Group CEO Paichta did not choose to visit China. avoid.

The Austrian who had a Ph.D. in automotive engineering at the Vienna University of Technology and worked for Mann for 24 years took office in January of this year and succeeded Samuelson as the CEO of the Manchester Group. In his view, the biggest difference between him and Samuelson is that "Samuelson focuses on the goal, and I am more concerned with how to achieve the goal."

Pachita said that if the cooperation with CNHTC is successful, it will consider introducing new projects. Whether the capital increase or not, and how much capital increase are all independent decisions of MAN, there is still room for an increase of 24%.

The reason is that China National Heavy Duty Truck Group holds 51% of its Hong Kong-listed company Sinotruk, which is a controlling shareholder. This share ratio will not change, so Mann currently holds a maximum of 25% and 1 share. Can increase the holding of 24% of shares.

"This is only theoretically possible and has not entered the actual stage of demonstration. The current focus of work is to help CNHTC to develop new products."

According to Pachta, Sinotruk is an equity partner and Sinotruk has become a part of Man. Both parties will jointly discuss the blueprint for future development, including how to conduct new research and development and launch new products.

Pachta also disclosed for the first time that it is now mainly focused on the cooperation of heavy trucks. In the future, it is also possible to expand cooperation to the cooperation field of medium trucks. “We are in the process of joint planning and common development.”

Ma Chunqi, chairman of China National Heavy Duty Truck Co., Ltd. who also appeared in the media at the same time, also said that "the cooperation with the Man Group has been carried out according to plan." According to reports, in the past year, the cooperation projects between the two sides have progressed smoothly. Specifically, the transfer of technical documents and localization work are nearing completion. The plant has started construction according to plans. Most of the sophisticated equipment that must be imported has been ordered and arrived, and personnel training and technical support have been fully implemented.

Small shares easy to integrate

In China's heavy truck market, there are many examples of Chinese and foreign joint ventures and their strength is extraordinary, such as FAW-GM, SAIC-Iveco, Dongfeng Nissan Diesel, Futian Daimler, and JAC NC2. Most of the Chinese and foreign companies mentioned above are 50:50 peer-to-peer ratios, and MAN and CNHTC have very different ways of cooperation with them.

Mann only shares a small portion of China National Heavy Duty Truck, which is 25% of the contract + 1 share, why not 50:50? One of the three non-executive directors sent by the MAN Group to China National Heavy Duty Truck Board and the member of the Munich Business Vehicles Board of Directors, Wilbur, disclosed in an exclusive interview with this newspaper that before the cooperation, they also conducted long-term investigation and thought that only through This form, "the road can go longer," and this form can be described as an "invention" among many European competitors.

Wilbur’s reason is that “joint ventures are like marriages between husband and wife.” The 50:50 joint venture is equivalent to two independent companies operating joint ventures under the condition of insisting on independence. The probability of contradiction is greater, and Man is only small. Shares, the two companies will be better integrated. Analysts believe that compared with giants such as Daimler and General Motors, the business focused on Europe is relatively weak, and it is difficult to compete with Chunghwa, one of the “big four”.

Although the surface is 25% + 1 shares, but Man still has veto power and decision-making power for products, Man also sent three non-executive directors and one executive director to the CNHTC board of directors. In addition, at the technical and operational level, CNHTC also has to rely on MAN to provide its TGA vehicle technology and key assembly and component technologies such as engines and axles, as well as Mann's global sales network.

Mann also gains a lot from Sinotruk, including the above-mentioned technical licensing fees that Cheung Kong will pay to Mann, and 25% +1 share dividends, China’s huge advantages in manpower and procurement, and Man’s real presence in China. Increased brand awareness and market share These intangible benefits.

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