Chapter 1873 Lituo's Situation

"Feng, your negotiation with that bank is progressing very well. I see that the media has already reported your acquisition." Kirilenko was happy for Feng Yu's smooth progress.

"It's okay. The price I gave is already very high. At this time, there are not many people who can spend so much money and are willing to buy their bank. They don't have many choices."

Feng Yu is leaning on the sofa in front of the stove, and it is really a kind of enjoyment to roast the stove in the cold winter. Fortunately, Ralph had already done work before, and Feng Yu only needed to come to make a decision. Being a boss is so good, you only need to make a decision, and don't need to do other things.

"It's good that everything goes well. I also contacted Lituo, but we have a strong competitor."

Got a competitor? Feng Yu remembered that Lituo had been rumored to be acquired in his previous life, but it seemed to have disappeared in the end, and it was also because of the impact of the financial crisis.

Feng Yu tapped his head: "Is it Vale or BHP? Let me guess, is it BHP?"

These two are currently the world's first and second iron ore companies, Lituo ranked third. Brazil's Vale accounts for more than one-third of the world's iron ore output, roughly as much as BHP and Littor combined.

So basically the price of iron ore in the world is determined by Vale, who is the leader in the industry. However, Lituo's second headquarters is in Australia, and the relationship with BHP Billiton is also good, and the two sides have been united to fight against Vale.

Considering the monopoly factor, even if Vale wants to acquire, it will not succeed. Otherwise, they occupy half of the world's iron ore, how can others play? So this competitor is BHP?

Kirilenko showed admiration in his eyes, Feng Yu guessed it before he said anything.

"That's right, it's BHP Billiton. They planned to acquire Lituo last year. The overall acquisition. The initial quotation was 150 billion US dollars, and it was raised to more than 170 billion US dollars at the beginning of this year."

"At that time, the stock prices of the two companies were rising rapidly. But then came the financial crisis. The stock prices of BHP and Lituo were both falling. The agreement between the two parties was not negotiated. Now it's on hold again."

"This also gave us an opportunity. If they had already negotiated, we would have no chance of acquisition at this time. And because of the financial crisis, the speed of industrial development is also declining, such as the automobile industry, machinery industry, construction industry, etc. In the decline, the demand for steel has decreased, which has also led to the price of iron ore falling all the way."

"According to the current stock price, Lituo's market value is only a little over 100 billion U.S. dollars, and their stock has fallen by more than 40% from its peak."

Kirilenko looked happy. If calculated according to the peak market value, then they might not really be able to buy it in cash. Moreover, the economic crisis brought about by the financial crisis will not last too long. It is just right that the steel industry is now at a low point, which shows that their purchase price will definitely not be too much premium.

Feng Yu raised his eyebrows, only a little over $100 billion? This price should be lower than its real value. After all, in addition to iron ore, Lituo also has a variety of other mineral resources, and has excellent technology and many rich ore.

"What about the financial situation? Lituo is a listed company, right? Have they lost money this year, and what is the expected loss or profit next year? And check carefully to see if there is any fraud in their finances."

If the financial data is not real, then their analysis will be wrong, and after the judgment is affected, they may have to pay a lot of money.

Since the overall decline in the steel industry this year, it is normal for Lituo to suffer losses. A loss in a certain year does not mean that the company will always lose money. After all, they still have a lot of minerals, which can be regarded as real estate that preserves value.

However, if a mineral resource seller really loses money, it will be quite disappointing. Feng Yu has to reconsider whether this company is worth buying.

"On the financial statements, they are still profitable this year,

The profit amount of more than 7 billion US dollars belongs to their entire Lituo Group. After all, their profit in the first half of the year was not bad. Under Lituo Group, there are three major group companies: British company, Australian company and Canadian company, which are listed in London, Australia and New York respectively. "

"They are the largest in the world in the aluminum industry. To a large extent, they can influence the pricing of aluminum, which is much more than their say in iron ore."

"According to their listing report, their turnover this year is about 30 billion US dollars. At the beginning of the year, they planned to have a turnover of 50 billion US dollars this year. If it weren't for the decline in the prices of various minerals and the decline in demand, Maybe they can actually finish it.”

"Well, correspondingly, BHP's turnover is about 40 billion U.S. dollars, and its profit is about 13 billion U.S. dollars. Vale, the leader in the iron ore industry, is relatively miserable, and its planned turnover is also about 50 billion U.S. dollars. , but the turnover is only about 32 billion US dollars, there is no way, the price of iron ore has fallen the most, and their profit is close to 12 billion US dollars, after all, they mainly export iron ore."

"Also, the turnover of American Aluminum this year is about 30 billion U.S. dollars, and the profit is only more than 3 billion U.S. dollars. If we acquire Lituo Group, this is also one of our competitors. But look at the profit of this company It is known that their mineral reserves are too low, and the mining cost is very high, mainly for processing.”

"In terms of mineral reserves alone, American Aluminum is far inferior to Lituo. Lituo acquired a Canadian aluminum company last year. Because of the bad economic situation and the need to update equipment in the mines there, the mining volume has decreased. , from 2009, Lituo will be able to dominate the aluminum industry.”

Kirilenko's meaning is very clear. After the acquisition of Lituo Group, they will have a great say in the aluminum and iron industries. In addition to their original say in gold, nickel, copper and other minerals, they can Become the world's number one mining group!

After becoming the boss, the operability will be even greater. Whether it is to crush the small ones, take the opportunity to annex them, or increase the profits of the entire industry, it is all a matter of their words.

It is the benefit of mining companies that they can still guarantee such a high profit when the prices of metals and other products have fallen sharply.

Only the cost of mining, transportation and maintenance is counted, and the rest is their profit. In fact, the profit of Polar Bear Mining Group this year is also good, but it is a non-listed company and did not participate in the Fortune 500 ranking, otherwise it would definitely be able to enter the top 500.

But it is not the first, Feng Yu is not rare at all. After the Polar Bear Mining Group becomes the number one in the world, "Fortune" will not rank, and it will not be able to cover up the glory of the Polar Bear Mining Group. At that time, it will prove that "Fortune" is not fair at all!

"Lituo's stock price is still falling, right? Why don't we buy their shares in the stock market at this time to gain the initiative." Feng Yu thought for a while and made a decision.

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