Integration and merger into the LED lighting industry, the new normal industry reshuffle is inevitable

At the moment, the LED lighting industry integrates mergers and acquisitions, not inferior to the summer temperatures. China's semiconductor lighting industry enterprises "spread everywhere", LED companies have sprung up like mushrooms, and undoubtedly lead to the industry is a reshuffle every year.

As we all know, the quickest means of resource integration is the merger and acquisition of enterprises. Whether it is the annexation of large enterprises or the acquisition of equity, it directly promotes the competition of resources of both parties. Last year, there were many M&A integration events in the semiconductor lighting industry, but this year's M&A events were particularly high, and from the beginning of the year to the present, the events of mergers and acquisitions or mergers and acquisitions have been staged on a large scale and high level!

January: Jingdian 160 million yuan to acquire 94% equity of Taiji Solid State Lighting;

March: Samsung acquired US LED panel makers YESCO and Jinshajiang for $3.3 billion to acquire 80.1% of Lumileds;

In April: Jingsheng Electromechanical plans to acquire 140% of the shares of Optoelectronics, and Lida International acquired the LED lighting business in the Mainland for 496 million yuan. AcuityBrands, the US lighting equipment manufacturer, announced the acquisition of ByteLigh and Helen Zhe's 260 million acquisition of Lianshuo Technology 100. % equity, Huatian Technology 50 million capital increase to acquire 51% equity of Mike Optoelectronics;

May: Shunfeng Clean Energy 2.04 billion yuan to acquire a 59% stake in Jingneng Optoelectronics;

June: LED "Giant" crocodile lighting wholly-owned acquisition of Kansai Lighting, Chau Ming Technology plans to acquire 215 million shares of Radio 40%, Ruifeng Optoelectronics to acquire 85% stake in Lingtao Optoelectronics, and Lianchuang Optoelectronics plan 100 million Acquired and increased the capital of 72.37% equity of Fangda Zhizhi, Alto Electronics plans to acquire 100% equity of Qianbaihui, and 528 million of Changfang Lighting acquired 60% equity of Kang Mingsheng;

July: Liard plans to spend 189 million strong holdings of two enterprises, Cree to acquire APEI Arkansas Power Electronics International, Shida Technology to acquire 300 million shares of Shuanghui Lighting Technology, and Xiamen Xinda Subsidiary to acquire Haotian Optoelectronics 75% of the shares, Lehman Optoelectronics plans to acquire 230% of the shares of Tuo Technology, Guoxing Optoelectronics plans to acquire 100% of Guangdong Desheng, e-Kong plans to acquire the equity of Yingrui Optoelectronics, Konka Lighting Co., Ltd. It is planned to acquire US BridgeLux for US$130 million, and the acquisition of German OSRAM channel business by Feile Audio;

August: In August 2014, Liao Jianwen, the original shareholder of Dongguan Liangyou Hardware, has transferred 51% of its equity to Hongli Optoelectronics, the leading white light packaging company. On August 5, 2015, Hongli Optoelectronics re-launched and seized the remaining 49% of the shares; Lehman Optoelectronics announced that the actual controller Li Mantie intends to contribute no more than 25 million euros through the holding company established in Hong Kong. Participated in the equity investment of Swiss Infinity Group with Wanda Group, IDG, Chinese Culture Fund and Oriental Pearl Tower; Ruifeng Optoelectronics increased capital Beijing Jingwei Weiyi Technology Co., Ltd. to deploy smart home market, Wanrun Technology plans to acquire LED company Auman 22% of technology...

From the beginning of the year to the present, LED lighting companies have implemented integrated M&A cases one after another, and it has been close to 30 since then, and most of them are listed companies. Moreover, the scale of funds used for mergers and acquisitions also ranges from a few tens of millions to hundreds of millions to hundreds of billions, with large enterprises being willing to exert capital, horizontal mergers and expansions, vertical extension and expansion, and then going abroad to implement cross-border acquisitions. Become the main theme of mergers and acquisitions in this era.

With the rapid growth of the LED industry, the global market competition pattern is constantly changing and changing, the optimal allocation of resources and the greatest improvement of benefits have become the ultimate goal of the enterprise. The LED industry reshuffle is inevitable, and integrated mergers and acquisitions will become the new LED industry in the future. normal. In 2015, it has already become the “M&A Year” of the industry's default LED lighting industry.

It is understood that there were more than 20 major mergers and acquisitions transactions in 2014. The total amount of transactions disclosed was nearly RMB 10 billion, covering all aspects of the industrial chain and involving cross-border cooperation. In addition to extending the industrial chain to achieve diversified development, the purpose of mergers and acquisitions is to increase the strength and scale up from the perspective of channels, brands and production capacity. In the fourth quarter, LED companies accelerated the pace of restructuring. There were 8 mergers and acquisitions in the LED industry, involving more than 6 billion yuan.

However, there have been no fewer than 30 mergers and acquisitions in the LED lighting industry. It has far exceeded the total of M&A events in the past year. The transaction size has also taken the Sanda River's $3.3 billion acquisition of Lumileds' 80.1% stake, and the transaction amount can be imagined. It is the key year for the LED lighting industry to accelerate the reshuffle. This year, in the name of “M&A Year”, it is not excessive.

From the current LED lighting market, there are more than 20,000 companies that only participate in the competition in China's lighting market. In the next three to five years, a large number of enterprises will be forced to integrate or be directly eliminated, and large-scale integrated mergers and acquisitions frequently occurred in the industry. It is normal. With the withdrawal of a number of small and medium-sized enterprises, the market concentration will be further improved in 2015, and leading enterprises in various fields will have more technological advantages and scale effects. However, the actions of major international companies such as Philips and Osram, although unexpected, are somewhat surprising.

Large equity acquisitions, wholly-owned acquisitions and mergers, companies can afford to initiate multiple serial acquisitions. Although the merger and acquisition integration incidents have not yet completed the acquisition, the author wants to say that M&A is only a means of resource integration. How to integrate development in the future is a matter of concern! Enterprises that initiated resource integration this year can join forces to cultivate new growth points. Let us wait for the new progress of the incident together!

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