Chapter 1873: The situation of Lituo

"Feng, your negotiation with the bank is going very well. I think the media has reported on your acquisition." Kirilenko was happy for Feng Yu's success.
"Alright, the price I gave is already very high. There are not many people who can take out so much money at this time, and they are willing to buy their bank. They don't choose much."
Feng Yu leaned on the sofa in front of the stove and baked the stove in the cold winter. It was a pleasure. Fortunately, Ralph had already done work before, and Feng Yu would just come over and make a decision. When the boss is so good, he only makes a decision and does not need to do other things.
"Everything goes well, I have contacted Lito, but we have a strong competitor."
Have competitors? Feng Yu remembers that in the past life, Li Tuo also heard the rumors of being acquired, but in the end it seems that it is no longer due to the impact of the financial crisis.
Feng Yu knocked on his head: "Is it a Vale or a must? I guess, it must be and must?"
These two are currently the world's No. 1 and No. 2 iron ore companies, and Li Tuo is ranked third. Brazil's Vale accounts for more than a third of the world's iron ore output, almost the same amount of BHP and Ritto.
So basically the price of iron ore in the world is formulated by Vale, they are the leader in the industry. However, the second headquarters of Lito is in Australia, and the relationship with BHP must be good. The two sides have also been united to fight the Vale.
Considering the monopoly factor, Vale will not succeed even if it wants to acquire. Otherwise they occupy half of the world's iron ore, how do others play? Then this competitor is the must and must?
Kirilenko showed his admirable eyes. He hadn't said it yet, Feng Yu guessed it.

Yes, it’s the must-have. They bought the company’s overall acquisition last year. The initial offer was $150 billion, which was raised to more than $170 billion at the beginning of this year.

"At that time, the stock prices of the two companies were rising rapidly. But then the financial crisis was not ushered in. The stock price of BHP and Litopi were both falling. The agreement between the two parties was not settled. This time it is put on hold again."
"This also gives us the opportunity. If they have already negotiated, we really have no chance of acquisition. And because of the financial crisis, the speed of industrial development is also declining, such as the automotive industry, machinery industry, construction industry, etc. The decline in steel demand has also led to a decline in the price of iron ore."
"At present, according to the stock price, the market value of the company is only one hundred billion dollars, and their stocks have fallen by more than 40% compared with the peak period."
Kirilenko looks happy, if they are calculated according to the peak market value, then they may not necessarily buy cash. Moreover, the economic crisis brought about by the financial crisis will not take too long, and the steel industry is now at a low point, indicating that the price they acquired will definitely not be too high.
Feng Yuyi raised his eyebrows, only one hundred billion dollars in the early stage? This price should be lower than its true value. After all, in addition to iron ore, Lituo has a variety of other mineral resources, and it has excellent technology and many rich mines.

Financial situation? Lituo is a listed company. Are they losing money this year? How much is the expected loss or profit next year? Also, check carefully whether they have financial problems.

If the finances are not real data, then their analysis will be wrong. After the judgment, they may have to pay a lot of money.
Since the overall decline of 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. These are also real estates that preserve value.
However, if a mineral resource is really lost, it will be disappointing. Feng Yu will also reconsider whether this company is worthy of acquisition.
"In terms of financial statements, they are still profitable this year, with a profit of more than seven billion US dollars, which is their entire Lituo Group. After all, their profits are good in the first half of the year. There are British companies, Australian companies and Canadian companies under the Lituo Group. Group companies, listed in London and Australia and New York, respectively."

They are the biggest in the world in the aluminum industry. To a large extent, they can affect the pricing of aluminum, which is much more than their voice in iron ore.

"According to their listing statements, their turnover this year is about 30 billion US dollars. At the beginning of the year, they plan to have a turnover of 50 billion US dollars this year. If it is not because of the decline in the prices of various minerals, the demand will also fall. Maybe they can really finish it."
"Well, the corresponding turnover must be about 40 billion US dollars, and the profit is about 13 billion US dollars. The iron ore industry's boss Vale is relatively miserable, and the planned turnover is also about 50 billion US dollars. However, the turnover is only about 32 billion US dollars. No way, the price of iron ore falls the most, and their profits are close to 12 billion US dollars. After all, they mainly export iron ore."

Also, the turnover of the company is also about 30 billion US dollars this year, and the profit is only more than 3 billion US dollars. If we acquire the Lito Group, this is one of our competitors. But look at the profit of this company. The rate knows that their mineral reserves are too low and the mining costs are high, mainly for processing."

On the mineral reserves alone, the rice aluminum industry is far less than the vertical one. Lito acquired the Canadian aluminum company last year. Because the economic situation is not good, and the mines there need to update the equipment, the mining volume is reduced. Since 2009, Lituo has been able to dominate the aluminum industry."
Kirilenko’s meaning is very clear. After the acquisition of the Lituo Group, they will have great voices in the aluminum and iron industries, plus they have the right to speak on gold, nickel, copper and other minerals. Become the world's number one mining group!
After becoming the boss, the operability is even greater. Whether it is squeezing those small, taking the opportunity to annex, or improving the profits of the entire industry, they are all a word.
In the case of prices such as metals falling sharply, they can guarantee such high profits, which is the benefit of mining companies.
Only the cost of mining, transportation and maintenance, the rest is their profits. In fact, this year's Polar Bear Mining Group's profit is also good, just non-listed companies, did not participate in the "Fortune" ranking of the top 500, otherwise it will definitely enter the top 500.
But not the first, Feng Yu is not rare at all. After the Polar Bear Mining Group became the world's number one, "Fortune" did not rank, nor could it cover up the glory of the Polar Bear Mining Group. At that time, it turned out that "Fortune" was not fair enough!
"Lito's share price is still falling? It is better for us to buy their stocks in the stock market and take the initiative." Feng Yu thought about it and made a decision.
... the poor four said the third, and there are more