Chapter 99 Acquisition of Chrysler Corporation
The next day, Yang Hai originally planned to travel around the United States, but plans could not keep up with changes, and Li Ying and Lu Manman both became pregnant.

I can't let them go around with me while they're both pregnant.

But it was a bit unreasonable to leave them at home and go wandering around with others. I had finally come to the United States, why didn't I spend time with them and wander around?

But now that their bellies are so big, they can only go shopping in the nearby streets, shopping malls and supermarkets.

Pregnant women also need proper exercise. They can’t stay at home all day!

While eating breakfast, Li Ying said, "Your purpose of coming to the United States is not just to inspect the branch!"

"That's not the case. Inspecting the American branch is just a casual thing." Yang Hai said with a smile.

"I thought you were worried about me and came here to check my accounts." Li Ying said with a smile.

"How is that possible? Since I have handed over the American branch to you, I must have absolute trust in you. If I don't trust you absolutely, I would not let you make all the decisions on your own. At least I would assign you a vice president to check and balance you." Yang Hai said hurriedly.

"That's more like it. I see that you came to the United States to seek cooperation with some companies. What industry are you planning to develop?" Li Ying said curiously.

"Which industries do you think have the greatest potential for future development in our country?" Yang Hai asked with a smile.

"Which industry has the greatest potential for future development in China? How should I put it? If we say that we humans cannot live without food, clothing, housing and transportation, you probably won't be interested in clothes. Even if you are interested, you can't go to the United States to seek cooperation." Li Ying thought for a while and said.

"As for the catering industry, it is not that easy to expand and become stronger. I guess you are not interested in it. Even if you are interested, you will not come to the United States to seek cooperation."

"As for housing, the industry with the greatest potential in the future in China may be the real estate development industry, but you already have Huarong Real Estate Development Company, so you can't go to the United States to seek cooperation."

"Then the only thing left is the automotive industry. High-speed rail, trains, and airplanes are all made by state-owned enterprises. It makes sense for you to come to the United States to seek cooperation in automotive manufacturing technology."

After listening to Li Ying's analysis, Yang Hai couldn't help but give her a thumbs up and gave her a big thumbs up.

"Your analysis is very accurate and well-reasoned. I admire you very much."

"What's the big deal? Is it difficult to analyze this result? As long as you are not too stupid, you should be able to analyze it." Li Ying said with a faint smile.

Yang Hai couldn't help but smiled bitterly and said, "You are too smart. There are not many people in this world who are smarter than you. You can earn more than 100 billion US dollars in one year's investment. Do you think anyone can do it?"

"Aren't you smarter than me? You earn more than 100 billion US dollars a year!" Li Ying said with a smile.

The more Li Ying studied Yang Hai and understood him, the more she admired his abilities.

If you don’t know Yang Hai, would you dare to believe that two years ago, Yang Hai was a penniless man who owed hundreds of thousands of dollars?
Zhitai relied on the one million yuan he got from Shen Ruobing to establish Huasheng Investment Company and Huasheng Charity Fund in just one year, and donated more than 2 billion yuan.

It has only been two years since the company acquired Huaguang Technology Company, Huafeng Technology Company, Huarong Real Estate Development Company, Huaxing Furniture Company and other companies. Moreover, the Huaguang smartphone developed by Huaguang Technology Company was well received by the market as soon as it was launched. Although the price was very high, sales were very hot and it quickly occupied the domestic high-end smartphone market, accounting for most of the market share. The profits from it can be said that other mobile phone brand manufacturers are very enviable.

It competed head-on with the internationally renowned mobile phone brand Samsung and unexpectedly won a great victory, forcing Samsung's smartphones, which had just been launched on the market, to lower their prices in an attempt to grab more market share.

It has only been two years, and it seems that no one can guess how much assets Yang Hai has.

If the outside world knew that he donated 200 billion US dollars, they would be absolutely shocked and unbelievable.

You have to know that it is only 2009 now. 200 billion US dollars, at least 1300 billion RMB, can be considered the absolute richest man in China.

In short, although Li Ying has achieved remarkable results this year and obtained a return on investment of more than 10 billion US dollars, Li Ying can look down on others, but she would never dare to be proud and complacent in front of Yang Hai.

Because she knew that Yang Hai was more powerful than her, so powerful that he was out of her reach.

Yang Hai didn’t know what Li Ying was thinking. If he knew, he would definitely be surprised!
Because his success cannot be replicated, and it does not mean how great he is. He is just lucky to have become a reborn person and lucky to have preserved his memories before rebirth. Otherwise, even if he was a reborn person, there would be no way he could have achieved such a big career and earned so much wealth in less than two years.

Yang Hai, who was unaware of the situation, could only smile awkwardly when he heard what Li Ying said.

It was impossible for him to explain to Li Ying why he was able to earn so much wealth in such a short period of time.

Moreover, Yang Hai felt that it was not a bad thing to let Li Ying admire him and regard him as an idol. It was also very good for him to maintain a sense of mystery in front of Li Ying.

"Are you really planning to enter the automotive industry? Our domestic automotive industry is not very good in terms of technology! The slightly higher-end cars on the city roads are basically foreign-funded cars and joint venture cars. Domestic cars are basically relatively cheap and low-end cars."

Seeing that Yang Hai smiled and said nothing, Li Ying continued.

"Do you want to come to the United States to find an automobile company, set up a joint venture in China, and produce joint venture cars?"

"Actually, I don't want a joint venture. We are not without funds. Why must we have a joint venture?" Yang Hai said, shaking his head helplessly.

"If we can directly acquire an automobile manufacturing company in the United States, and then use the production technology of the acquired American automobile manufacturing company to open an automobile company in our country that is nominally a joint venture, but in fact is completely under our control, this would be the most perfect result I want."

"Which car company have you set your sights on? How do you plan to acquire it?" Li Ying asked.

"Well! In fact, I have completed part of the acquisition and obtained 58.5% of the company's shares. This time, I come here, hoping to continue to acquire the remaining shares." Yang Hai said calmly.

"What? You have already acquired 58.5% of the shares of this car company. Are you talking about Casiano Automotive?" Li Ying couldn't help but stood up in surprise and said.

Li Ying has always been following major financial news in the United States. When Yang Hai said that he had acquired 58.5% of the shares of this company, Li Ying immediately thought of Chrysler Corporation, the third largest automobile company in the United States, known as Chrysler Corporation in China.

The reason why Li Ying was shocked was that this automobile company was the third largest automobile company in the United States. Even though it had filed for bankruptcy protection, the value of its total assets still reached more than 390 billion US dollars.

And Yang Hai actually said that he had already obtained 58.5% of the company's shares, which was worth more than 23 billion US dollars.

No wonder Li Ying was so surprised, even a little bit out of control.

"That's not right! Isn't the company that acquired Chrysler another small American car company? Did you also acquire that car company?" Li Ying asked. "That's right, I first acquired a small American car company, and then this company came forward to complete the acquisition of Chrysler." Yang Hai nodded and said.

"I'm in the United States. I'm the person in charge of your Huasheng Investment branch in the United States. How could you hide such a big thing from me?" Li Ying felt a little sad because of Yang Hai's distrust.

"Yes! Li Ying and I are both in the United States. You actually hid such a big acquisition from us and didn't tell us." Lu Manman said a little unhappily.

Seeing that the two looked a little unhappy, Yang Hai couldn't help but explain: "To be exact, I acquired a car company in China, called Jianghe Automobile Company."

"Jianghe Automobile Company sent people to the United States and acquired another American automobile company. Later, it completed the acquisition of Chrysler Automobile Company in the name of this American automobile company."

"The reason why I didn't tell you and didn't let you make the acquisition in the name of Huasheng Investment's US branch is because I didn't want to cause any trouble. After all, with Huaxia Company's background, it would be difficult to complete this acquisition."

"And let professionals do professional things. After all, you are not professionals in the automotive industry, and you don't really know how to evaluate its value."

"I absolutely do not mean to disbelieve you or distrust you."

"Besides, you are already pregnant with such a big belly, so I can't let you worry about this."

"Forget it! What you said does make sense. Even if you were in China and asked me to complete this task, I would indeed be a little overwhelmed." Li Ying shook her head and said.

"But even if Chrysler is going to go bankrupt, it's still worth a lot. I'm curious, how much did you spend on acquiring 58% of its shares?"

"Not much, probably about 45 billion US dollars in total!" Yang Hai said easily.

"How come it only cost 45 billion U.S. dollars in total? Didn't Chrysler Corporation file for bankruptcy protection? Its total value is as high as more than 390 billion U.S. dollars. You acquired % of the shares, so isn't the value of about billion?" Li Ying asked in surprise.

"The total asset value is more than 390 billion US dollars. We only acquired a part of the high-quality assets. The non-performing assets must be divested." Yang Hai said with a smile.

"However! Although his total assets are worth more than 390 billion US dollars, a large part of it is difficult to cash out. Of course, we can't calculate it based on his value."

"After stripping off some of the bad assets and discounting it by 100%, the total would be less than $ billion."

"Another 41.5% of the shares are held by a voluntary employee benefit association."

"What exactly is going on? I don't really understand it. As you know, my knowledge level is very limited."

"Anyway, I spent $45 billion to get 58.5% of Chrysler's shares, and the U.S. government also promised to inject $120 billion into Chrysler in the future. However, this money has to be repaid in the future, which is equivalent to an interest-free loan for three years!"

"Although we have completed the acquisition of Chrysler, Chrysler is still an American car company because 41.5% of its shares are still in the hands of Americans."

"The actual control of the company is still in the hands of the Voluntary Employees Benefit Association of the United States. Therefore, in order to completely control Chrysler Motor Company, it is necessary to conduct a secondary acquisition and acquire the remaining 41.5% of the shares from the Voluntary Employees Benefit Association of the United States."

"The biggest purpose of my coming to the United States this time is to achieve this goal."

In fact, this is different from buying things. It is not purely like buying things. It is a business merger and acquisition. It cannot be simply calculated based on how much assets the other party has. It is more like a cooperative relationship between the two parties, a mutually beneficial cooperation.

One needs money to save the company's fate. The other needs technology and market to develop the company.

"So how are the negotiations going over there now? Are they going smoothly?" Li Ying asked.

Although what Yang Hai said was a little unclear, Li Ying still understood it. Her professional knowledge on international corporate mergers and acquisitions was many times stronger than Yang Hai's. She understood many things just by listening.

"It should be going smoothly for now!" Yang Hai nodded and said.

"The general terms have been agreed upon. The purchase price is about $35 billion. The current dispute is about the payment method and the compensation to be paid to the United Auto Workers Union, which is as high as $5 million."

"Without the consent of the United Auto Workers, this acquisition cannot be passed."

"And if you want to get the UAW's signature, you have to pay them this compensation."

"And even if the acquisition is successfully completed, if we want to continue to produce cars in the United States, we will inevitably need the support of the United Auto Workers Union. Otherwise, it will still be a big problem in the future."

"That's for sure. The situation in the United States is different from that in China. Even if you have complete control over this automobile company and focus its development in China in the future, you cannot lose the American and European markets." Li Ying nodded and said.

"Chrysler's car brand's main market is in Europe and the United States, and its market share in China is not large."

"So in the future, Chrysler's automobile factory production lines, warehouses, and other industries in the United States will definitely need to continue to be retained."

"Your purpose in acquiring Chrysler is nothing more than to open a joint venture brand car company in China under its name, produce joint venture cars, occupy the domestic market and the Asian market, and your main competitor is Japanese brand cars."

"But Chrysler is very famous in the United States and the European market, and its sales are also very good. So no matter what happens in the future, the Chrysler brand will definitely not lose its market share in Europe and the United States!"

"So no matter what, you have to give the money. The only difference is how much you give."

Yang Hai nodded and said, "Of course you are right. The money must be given. It's just a matter of how much."

"At first, the UAW asked for $7 million in compensation, but later it was negotiated down to $5 million."

"The team in charge of the negotiations now believes that there is still room for further negotiation on this price."

"There is room for further negotiation not only on the compensation paid to the United Auto Workers, but also on the purchase price."

"They suggested waiting for a while and giving the other party the cold shoulder. The colder we act, the easier it will be to negotiate the price."

"If we act too eager, it will be hard to negotiate a lower price. The other party may even raise the price temporarily, so we must not be too anxious."

(End of this chapter)