As a subsidiary of the Hana Group, Kumho Tire is the second largest tire company in Korea. However, due to factors such as pre-debt restructuring, South Korean trade unions, and the declining sales volume in the Chinese market, the operating revenue of Kumho Tire has been declining for three consecutive years and the net profit has suffered a serious loss. Kumho Tire realizes that in order to adapt to the global market for the restructuring of tire companies, major choices must be made - restructuring and mergers and acquisitions. As early as last year, there were rumors that ten companies were interested in this acquisition, including: Bridgestone , Michelin , Goodyear , Horse, Apollo, and China Chemicals. As a result, none of these 10 companies have been favored by Kumho. Although Kumho has had scandals with a number of companies, Kumho eventually turned the olive branch to Qingdao Double Star. According to insiders, the reason why Qingdao Double Star was selected is that it has the most comprehensive advantage for Kumho. First of all, Kumho’s sales in the Chinese market once occupied the forefront and its importance is self-evident. Secondly, even if it is a Chinese enterprise and a tire company familiar with the industry, DoubleStar outperforms other non-tire companies in business management. Third, Doublestar has a position in the Chinese tire industry and many years of experience in transformation and development. Qingdao Shuangxing announced as early as November 2016 that it plans to participate in the establishment of an industrial M&A fund and seek M&A opportunities at home and abroad. In addition, there are insiders who stated that as early as the establishment of the M&A fund, Kumho Tires had been targeted for South Korea. That being the case, why is the merger and acquisition event variable, is Qingdao Shuangxing being played by Kumho? From South Korea's point of view, the resistance comes first from Park Sang, the senior leader of the Asian-Asian Group. Although he had previously waived the exercise of the right of first refusal, he recently resorted to a simple and straightforward trick - refusing to grant trademark rights to Qingdao Shuangxing Kumho Tire. This is also a direct cause of this failure. Second, last week, the Kumho Tire Company of South Korea led the workers to gather at the door of the creditor bank to boycott the sale of shares. In addition, as early as two-star mergers and acquisitions Kumho made a phased progress, the Korean trade unions, the parent company, some government-owned enterprises have already called for the termination of the transaction. For the Chinese side, internal personnel revealed that if the ROK insists on reluctance to let go of the right to use the Kumho trademark, Qingdao Doublestar may abandon its acquisition of Kumho Tire. The acquisition is complicated and there are many uncertainties. One of them is related to the Kumho Tire's back-grinding event. The so-called back gels are films that do not conform to the regulations on certain indicators and may have quality problems. Each tire company does use back-grade rubber, but the ratio of raw rubber is More stringent. The incident has plummeted for Kumho Tire, both in terms of brand image and sales performance. And so far, the negative impact of the incident has always existed. After cooperating with Qingdao Double Star, Kumho has not only enhanced its competitiveness in China, but also has been able to jump through mergers and acquisitions to become China's largest tire manufacturer, and is even expected to launch an impact on the top five globally. The well-established global layout of Kumho Tires will also help double-stars move toward greater internationalization. Therefore, successful mergers and acquisitions that achieve mutual benefit and mutual benefit are the best outcomes for both parties. A Panel Bender is a machine used in sheet metal fabrication to bend and shape metal panels. It is commonly used in the automotive and aerospace industries to produce body panels and other components. The panel bender uses a series of rollers and bending tools to shape the metal into the desired form. The operator can adjust the angle and radius of the bend to create precise shapes. Panel benders can handle a wide range of sheet metal thicknesses and can produce complex shapes with high accuracy. Panel Bender,Automatic Panel Bender Machine,Cnc Bending Machine,Sheet Bending Machine,CNC panel bending machine,panel bender,panel bender vs press brake,panelbender,pressbrake,panel bender for sale FOSHAN RAGOS NC EQUIPMENT CO.,LTD. , https://www.ragosnc.com
Kumho Tire Mergers Again Waves on Cross-border M&A Unclear Prospects
In March 2017, Qingdao Double Star Co., Ltd. announced that it has signed an agreement with the Bank of Korea to acquire Kumho Tire . When the industry debated the "snacks with big snacks" merger and acquisition incident, it blew up again this month, making the prospects of this cross-border M&A unclear.