2018 has just arrived, and something big has happened in the magnetic parts industry. On January 3, the passive component manufacturers Qilixin and Meilei both announced that they would merge in the form of a share exchange, and after the merger, Qilixin will become the world's third largest inductor factory.
The all-in-one molding inductor giant is about to be born
In recent years, the phenomenon of mergers and acquisitions in the industry has appeared frequently. Qili's new acquisition of Meilei is just one example.
As far as Qilixin is concerned, in addition to the acquisition of Meilei on January 3 this year, there have been other acquisitions as early as 2017.
On January 23, 2017, Qilixin acquired a 100% stake in Ferroxcube for 133 million euros in cash. At the same time, it merged with 1 share of Wangyi in exchange for 0.78 shares of Qilixin. The equity closing and share conversion of the two acquisitions were completed in June 2017.
In addition, Qilixin also matched the winding inductance and automation equipment development capabilities of Hunan Yuanling Xianghua Technology, and spent 40 million yuan to obtain a 49.9% equity interest in Xianghua Technology.
For Qili's new acquisition of Meilei, the reporter of "Magnetic Components and Power Supply" interviewed industry insiders.
Tang Jianwei, product manager of Guangzhou Delong Magnetoelectric Technology Co., Ltd., said: "Before the merger, Meilei was a relatively large-scale inductor manufacturer, and the strength of Qilixin was also very strong, and after Qilixin's acquisition of Meilei, its strength will definitely be strengthened." In addition, Meilei in the field of integrated molding is relatively early, Qilixin also has a large investment in this regard, after the merger of the two, there may be a giant in the field of integrated molding. ”
Hu Ziming, deputy general manager of Hetai Mengfang Electronics (Shenzhen) Co., Ltd., said: "Qili's new acquisition of Meilei has little impact on the industry. Qilixin's acquisition of Meilei is purposeful, and its main purpose is to enter Apple's industrial chain and get Apple's orders. ”
Most of the mainland's vertical mergers and acquisitions
In addition to the mergers and acquisitions of Taiwan enterprises, there are also many examples of mergers and acquisitions of mainland magnetic parts enterprises.
Tang Jianwei told the "Magnetic Components and Power Supply" reporter: "At present, our magnetic parts industry mergers and acquisitions are still relatively many, many inductive device companies will choose to acquire some upstream suppliers, such as magnetic materials, skeletons, magnetic rings and magnetic cores. ”
In July 2015, Ningbo Yunsheng proposed to acquire 25% of the shares of Magnet Components and Hi-Tech Magnetics held by Huiyuan Hong Kong by issuing shares to purchase assets at a price of 19.88 yuan per share; Acquired 70% of the equity of Sheng Magnetic Technology held by 10 counterparties such as Yang Jinxi and Liu Xiaohui by issuing shares to purchase assets.
In October 2016, Delon Magnetoelectric issued an announcement to acquire the equity of Zhongshan Dongze Powder Coating Co., Ltd. In May 2017, Delong Magnetoelectric proposed to acquire 100% of the equity of Dongguan Xinju Magnetic Material Technology Co., Ltd. for 1 million yuan.
On August 21, 2017, Maijie Technology issued an announcement that it intends to acquire a 67.5% stake in Chengdu Jinzhichuan Electronics Co., Ltd., a military enterprise, in cash.
As early as 2013, Shunluo Electronics participated in Dongguan Xinbai Structural Ceramics Co., Ltd. (hereinafter referred to as "Xinbai Ceramics") through the transfer of equity, and since then, Shunluo Electronics has held 15 million shares of Xinbai Ceramics, accounting for 24.67% of its total share capital. In March 2017, Shunluo Electronics announced that it intends to acquire 57.57% of the shares of Xinbai Ceramics in cash, and the shareholding ratio after the acquisition is completed reached 82.24%, realizing mergers and acquisitions.
For the vertical merger and acquisition of upstream and downstream enterprises by mainland magnetic parts enterprises, Tang Jianwei said: "In the mainland, there are relatively few cases similar to Qilixin's acquisition of Meilei. Many mergers and acquisitions of mainland magnetic parts companies tend to be upstream and downstream enterprises, because this is of great help to the enterprise itself, and can control upstream materials to a certain extent. For example, in the inductance industry, material technology is relatively core, and if upstream companies can be acquired, this is also conducive to improving the competitiveness of device companies. ”
Li Xianglong, director of the Inductor R&D Department of Xiamen TDK Co., Ltd., also said: "As far as I personally understand, from a technical point of view, if you can grasp the upstream and downstream resources, it will be of great help to yourself. Mergers and acquisitions of upstream and downstream enterprises can be said to be a trend of industry development, not only in the mainland, but also in many foreign companies. ”
The wave of listings will fuel horizontal mergers and acquisitions
In fact, the phenomenon of corporate mergers and acquisitions is not uncommon, and mergers and acquisitions of enterprises also have certain benefits for the development of enterprises. To a certain extent, the merger or acquisition of enterprises can expand the scale and improve market competitiveness, and can also achieve resource sharing and complementary advantages.
Li Xianglong said: "The combination of strong and powerful enterprises is helpful for the development of technology, because resources can be shared between the two. ”
In the past, the phenomenon of mergers and acquisitions in the magnetic parts industry was relatively rare, but in the past two years, the phenomenon of mergers and acquisitions has increased significantly. In this regard, Hu Ziming said: "Enterprises want to become bigger, mergers and acquisitions are inevitable, but also a trend. ”
Zhou Hui, assistant general manager of Yamasi Electronics, also believes that in addition to vertical mergers and acquisitions, the phenomenon of peer mergers and acquisitions in the later stage will also increase. He said: "Most of the mergers and acquisitions between upstream and downstream rely on equity participation, and mergers and acquisitions between peers need capital as support. Previously, the magnetic parts industry did not have the conditions for peer mergers and acquisitions, one is because of the mutual competitive relationship between peers, the other is because of insufficient capital strength, so most of the mergers and acquisitions in the past are mergers and acquisitions between upstream and downstream manufacturers, and now some listed companies that have appeared in the industry, after the company is listed, there will be a certain amount of capital, which is possible to achieve mergers and acquisitions between peers, and the phenomenon of peer mergers and acquisitions in the later stage may increase. ”
In recent years, magnetic parts companies have emerged a wave of listing on the new third board, while in 2017, Mingpu Optomagnetic, Igor and Jingquanhua were listed on A-shares.
As for the impact of corporate mergers and acquisitions, Tang Jianwei believes: "If mergers and acquisitions are strong and powerful, then there will be oligarchs, there will be a monopoly hidden danger, but on the other hand, it is enough to help the advantages between the two complement each other, and have certain benefits for the development of technology." ”
Zhou Hui also believes: "Mergers and acquisitions between enterprises still have a positive impact on the industry, as far as the magnetic parts industry is concerned, it has been developed for decades, and it also needs some fresh blood to promote the rapid growth of the industry." If the development of the industry does not rely on the power of capital, only relying on the 'snowball', '1 + 1 = 2' way, the process is relatively slow, and through horizontal mergers and acquisitions and capital injection, it may produce the effect of '1 + 1>2'. ”
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