Problems in Sany Heavy Industry's Acquisition of Putzmeister Company in Germany

Dilemma 1: The cash flow is still difficult to support Sany Germany and CITIC Fund * * * to acquire 0/00% equity of Putzmeister/KLOC, of which Sany Germany acquired 90% and CITIC Fund acquired 10%. The acquisition of Sany Heavy Industry will cost 2.654 billion yuan, and according to the latest third quarterly report, the net cash flow generated by operating activities is negative151600 million yuan, so the current capital situation of Sany Heavy Industry is not enough to acquire Putzmeister. [detailed]

Dilemma 2: Profit contribution is less affected by the financial crisis. 20 1 1 year, Putzmeister's income dropped to about 560 million euros. 20 1 1 year, the company's net profit is only 6 million euros. If Sany Heavy Industry completes the acquisition, its contribution to net profit will be limited. [detailed]

Dilemma 3: The product price is too high. Although Putzmeister has a wide range of channels, its pricing is much higher than that of European competitors such as Italy CIFA (acquired by Zoomlion in CIFA in 2008). Among them, the price of concrete pump in Steby CIFA of Putzmay is at most 20% higher, and the price difference of mixing machinery is 13%. [detailed]

Dilemma 4: It may be difficult to get real technology. An enterprise like Putzmeister has natural international leading technology in the fields of hydraulic system, painting and welding, but it is unlikely to divest its R&D team to Sany Heavy Industry, otherwise the future development of this German company will face great risks. [detailed]

Dilemma 5: The problem of workers' placement remains to be solved. On Monday, hundreds of workers demonstrated in front of the Putzmeister headquarters. Apart from worrying about unemployment, they also protested that they were kept in the dark and knew nothing about the deal. [detailed]