v3 Chapter 1308： Bargaining the Gulf Oil Company's business

The latest website: "Mr. Xia, after a visit in the afternoon, I saw the driving force for the flourishing development of the mainland. I decided to invest in the mainland, but I would like to hear your opinion."

"Mr. Richard, maybe you can also invest in aluminum, steel, petrochemical, chemical and other industries."

Xia Yu made a very pertinent suggestion based on what he knew about the Mellon consortium.

Richard King Mellon glanced at Xia Yu in surprise, and said with a smile: "I remember that you have invested in companies in the steel, petrochemical and chemical fields here. Are you afraid that I will compete with you?"

Xia Yu smiled slightly and said frankly: "Why should I worry? This is a country with one billion people. I can't eat all the markets alone. Even if you don't come, there will be others in the future. Competition will always exist. Yes, and only competition can force my company to become even better, out of the mainland, and into the world."

Richard King Mellon laughed: "You are right, it seems that I think too much."

"However, the petrochemical, chemical and steel sectors are not suitable for investment in the mainland, but the aluminum industry can choose."

Xia Yu raised his brows slightly and asked, "Why? I'm a little curious."

Richard King Mellon explained: "Under the current international environment, the basic industries are in a trend of decline. The US steel industry is very difficult to operate. It is even harder to do business in foreign markets, not to mention that you already have your steel company here. , Enough to fill the market in the southern part of the mainland."

"In the field of chemistry, the development conditions and market in mainland China are not mature enough for the time being."

"As for the petrochemical field, Gulf Oil's strategy is to abandon its foreign business and fully shrink its business back to the United States. Although I am a major shareholder of Gulf Oil, it is difficult for me to change the company's strategic plan."

Xia Yu's heart moved, and the interface said: "I seem to have seen relevant news in the past. Gulf Oil has gradually cleaned up assets outside the United States in the past few years."

Richard King Mellon did not hide, but admitted frankly: "Yes."

"Last year, I have sold gas stations in Belgium, the Netherlands, Luxembourg, Sweden and Norway to Kuwait National Petroleum Corporation twice."

"In the near future, we plan to sell more than 1,500 gas stations in Western Europe and the four-million-tonne/year refinery in Bertorio, Italy."

"In the future, the company's oil refining, sales and chemical businesses in Western and Northern Europe will all be cleaned up."

This is the open business strategy of Gulf Oil Company, so Richard King Mellon has not concealed anything, and even hopes that the news will spread even more, attract more buyers and return more funds.

After all, the situation of Gulf Oil Company is not so good.

The Gulf Oil Company, the pillar of the Mellon Consortium’s oil field, is currently the fifth largest oil company in the United States and the seventh largest in the world as one of the seven oil sisters. Its annual turnover last year was US$29.8 billion, but its profit was only US$700 million. The profit margin is only 2.35%.

This is the fourth year that Gulf Oil has fallen in profits.

Xia Yu narrowed his eyes and said with a smile: "Mr. Richard, hearing what you said, I suddenly became interested. How about Gulf Oil selling all Western Europe and Northern Europe and its business to me at once?"

Xia Yu's sudden proposal surprised Richard King Mellon. He watched Xia Yu for a few seconds and found that Xia Yu was serious. He smiled and said, "Of course, as long as the price is reasonable."

Xia Yu smiled slightly and said softly: "Of course, I won't let my friends lose out. I will send someone to contact Gulf Oil Company later, so please inform the management in advance."

"No problem." Richard King Mellon smiled and nodded.

Although Xia Yu was very interested in Gulf Oil's business, he avoided Richard King Mellon's clues. He skipped this topic and went back to the beginning.

"Mr. Richard, let's go back to the original topic. Are you planning to invest in aluminum companies in the mainland?"

"Yes, it seems that this market is the most suitable at the moment."

"It's just that I still have some concerns about the development environment in the mainland."

"It can only be a joint venture and cannot obtain a relative controlling stake. This will pose a huge risk to the company's operations."

Richard King Mellon nodded and raised his concerns.

It is normal for him to have such worries. Xia Yu also expressed his understanding. Although the mainland seems to have made great strides in reform and opening up, the various restrictions still make European and American capital accustomed to capital freedom feel uncomfortable.

Many European and American companies did not come to the mainland for these reasons at the beginning of reform and opening up. After 1993, the mainland entered the second stage of reform and opening up, when European and American capital poured into the mainland on a large scale.

The previous Alcoa Company also took the first step in 1993 and tentatively opened a representative office in the capital.

"Mr. Richard, there is really no way to do this. I have to abide by many rules, but for now, my company has not encountered any problems."

Xia Yu shrugged and said.

Richard King Mellon took a sip of coffee, and when he put down the cup, he suddenly suggested: "Mr. Xia, how about this, I invite you to work together, how about?"

Xia Yu was a little surprised, and asked, "What is a cooperative method?"

Richard King Mellon spoke out the idea he had just come up with: "I let Alcoa invest in the mainland, but in terms of equity, I can take a step back. It only accounts for 40% and the remaining 60%. You and the mainland government share equally."

"Do you think this can be achieved?"

Under Richard King Mellon's scorching eyes, Xia Yu thought about it.

Obviously, Richard King Mellon does not believe in the mainland, so he does not intend to allow the mainland to obtain a relative controlling stake.

But Richard King Mellon himself knew that he couldn't get a relative controlling stake, so he came up with this compromise and hit the side ball.

According to his cooperation law, Alcoa will be the largest shareholder, and the mainland government can only be the second largest shareholder on par with Xia Yu, and the influence of the mainland government will be weakened to a minimum.

Finally, he also reached a cooperation with Xia Yu on this project, which deepened the cooperative relationship and reduced the company's risks.

For Richard King Mellon, there is no difference between 49% and 40% equity.

After thinking through Richard King Mellon's calculations, Xia Yu was rather happy. He had no reason to refuse such a cooperation.

He can completely let the mainland-registered Kyushu Industrial Group buy shares, and the problem will be solved.

This is a privilege he has obtained, and it can be regarded as the return of the mainland's strong support for him. Kyushu Industrial Group does not belong to foreign capital and can be regarded as mainland local capital.

Therefore, Richard King Mellon was looking for him to cooperate with is the right one. Apart from him, there is really no second suitable person in the mainland.

"Mr. Richard, I think I have no reason to refuse."

Xia Yu responded with a smile to his proposal.

"Then it's settled for the time being and I'll hand it to you tomorrow."

"no problem."

...

In fact, after Xia Yu returned that evening, he called Liu Zhongfei and informed him of Richard King Mellon’s intention to cooperate, and pointed out that Kyushu Industrial Group was involved because of the special nature of Kyushu Industrial Group. , Liu Zhongfei naturally agreed.

The next day, the three parties sat down and reached a preliminary cooperation intention. As for the actual implementation stage, Alcoa must send someone to negotiate.

Then the group returned to Xiangjiang. In the evening, Richard King Mellon and others boarded a private jet and returned to the United States.

After Xia Yu rested for a night, he ordered Pacific Oil Company, which had been set up and operated for more than a year, to send a team to the United States to negotiate the acquisition of Gulf Oil Company's refineries, sales and chemical businesses in Western and Northern Europe.

He who is familiar with historical trends knows very well Gulf Oil Company has made a very wrong strategic decision, shrinking international business, and completely shifting its focus back to the United States, which will bring Gulf Oil Company into the abyss and eventually its demise .

The value of these international assets of Gulf Oil Company will rise after a few years.

Of course, what Xia Yu values ​​most is the talents and management system contained in Gulf Oil’s businesses in Northern and Western Europe. This is accumulated over decades. If he is allowed to build the same amount of business from the beginning, the least It takes ten years.

Now his Pacific Petroleum Company, but last year bought nearly 7 billion U.S. dollars worth of equity in oil fields and oil extraction companies, and he plans to stock up oil fields in the future. What is urgently needed is the ability to process and sell oil.

Can it be solved with money, or is it a bargain hunter, isn't it good?

Moreover, the cooperation with the Mellon consortium on the mainland and the cooperation with the Gulf Oil Company are sufficient to explain the reason Richard King Mellon came to Xiangjiang. It is enough to divert the attention of the Lowhill family!

ps: Second, ask for a monthly pass!