AU Finance China International Marine Acquisition of Maersk Container Industry Paper

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Economics

American University

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Studying an international project-finance deal, M&A transaction, or privatization from a corporate-finance perspective, or (ii) a risk-management transaction (operating or economic risk), synthetic funding, arbitrage opportunity, etc. from a capital-
market perspective.
To find interesting projects, I suggest that you read the FT, look on Bloomberg, or visit Standard
& Poor’s website, where you go to corporate finance analyses in the Forum, and select the Utilities
and Infrastructure Finance section (the website constantly changes, though). Similarly, Moody’s has
sample analyses that might be of interest on their website. However, contrary to S&P, you have to
search Moody’s website for materials which will often complement what you find on S&P’s. Taking
such a recent international project-finance deal that was funded in the global capital markets (global
bond or equity issue) as an example of your project the analytic focus should be on:
1. capital structure and risk distribution;
2. the contractual web: off-take agreement, loan and bond covenants, construction agreements;
3. risk assessment and pricing: how were the bonds priced?
4. capital budgeting: economic and viability (simulation analysis);2 existence of real options;
5. riskiness of the output buyer through credit spread or simulation analysis.

Topic:

https://www.reuters.com/article/maersk-m-a-china-international-marine-idUSKBN2GO044

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1 Project Proposal (Anta acquires Finnish Amer Sports) 1. Description of the case study subject (i.e., organization, institution, etc.): Between late 2018 and early 2019, an investor consortium consisting of Anta Sports, together with FountainVest Partners, Anamered Investments and Tencent, acquired Amer Sports, an internationally renowned sportswear company, making it the largest acquisition in the history of the Chinese apparel industry and the sportswear industry, as well as the largest M&A in the Asian market between 2018 and 2019. Anta Group is an integrated, multi-brand sporting goods group specializing in the design, production and sale of sports footwear, accessories and other sports equipment. The company was founded in 1991 and listed in Hong Kong in 2007. Since 2015, Anta Group has been the largest sporting goods group in China. In the Chinese sportswear market, Anta Sports' market share in 2020 is 15.4%, second only to Nike and Adidas. Amer Sports, the world's top sports equipment brand management group, has been providing professional athletes and amateur sports fans with the world's most advanced sports technology products. Founded in Finland in 1950, the company began its sports business in 1974 and is now a multinational sports goods manufacturer and marketer with over 8,000 employees. It owns a series of brands including Arc'teryx, a Canadian luxury outdoor equipment brand, Salomon, a French mountain outdoor trail brand, Wilson, an American tennis equipment brand, Atomic, an Austrian ski equipment brand, etc. 2. Rationale: First of all, Anta, as the leader of Chinese sports brands, is familiar with our team members. Almost every city in China has Anta brand stores. Especially the company’s slogan "Anta, Never Stop" has attracted many consumers. We You can learn the details and terms of the acquisition. Secondly, this acquisition case is very attractive to our team because we believe that Anta Group, the world’s third largest market value, can acquire Finland’s Amer Sports. This is a milestone event in the sports industry, because regardless of the standard, importance or potential of the acquisition , This is unprecedented. Finally, although the consortium led by Anta acquired Amer Sports (Yahoo Finance) at a premium of 43%, Amer Sports itself has a large number of high-premium brands, which allows us to better analyze the advantages of the industrial chain after the acquisition of Anta. Financing advantages and information integration advantages, understand the effects of economies of scale. Pay attention to the scope of application of data protection due diligence in Anta's mergers and acquisitions, risks and countermeasures. 3. Timeline: In the Anta acquires Finnish Amer Sports case, the first thing related to case studies is data and information collection. In this task, we need to complete the information collection of 2 acquisition details and terms. The second is the marketing strategy and operation of Anta and Finnish Amer sports. Then we can plan to understand the industry situation and industrial chain structure of the sports industry. Finally, our goal is to analyze the advantages of the industrial chain, financing, and information integration after the acquisition of Anta, and understand the effect of economies of scale. It also gives some suggestions on the application scope, risks, and Countermeasures of data protection due diligence in Anta's mergers and acquisitions. We will meet every Wednesday after class to discuss how to allocate work and complete the main business plan in the last two weeks. Project Outline 3 The final project of our group is to analyze Anta's acquisition of Finland's Amer Sports. Anta is the first sportswear brand in China with a market value of 100 billion yuan, and it currently exceeds 500 billion yuan. Anta has become a traditional Chinese sports brand leader with its precise judgment and bold reform courage. Anta's acquisition of Amer Sports is a milestone event in the sports industry. Whether it is the company's production scale economy effect, market power effect, future financing and brand equity development strategies have historically positive significance. Economic performance: ● Posted revenue of 22.81 billion yuan ($3.52 billion) in the first half of 2021 on Tuesday, up 55.5 percent over the same period of last year. (Yang, 2021). ● Gross profit margin rose to 63.2%, a year-on-year increase of 6.4%. ● Anta purchased all shares of Amer Sports at a price of 40 euros per share for a total purchase price of approximately 4.6 billion euros. ● On the Chinese sales platform, Anta's sales have increased by 59% compared to the same period last year. It is estimated that sales of Adidas products have fallen by 78% during this period, and Nike’s sales have fallen by 59%. (Bain, 2021). Financial challenge ● Local reports in Finland stated that Amer Sports shares were valued at 30 Euros per share, with a closing price premium of about 40%. Such high-premium mergers and acquisitions and overestimating the value of Amer Sports are risky. ● Anta uses leveraged financing, and both gains and losses can be magnified. During the five-year repayment period of 800 million Euros of debts assumed by Anta M&A, it provided 1.3 billion Euros of debt obligations for the consortium. This makes the debt burden of the enterprise exist for a long time. Increased the risk of leveraged financing. ● Anta uses cash payment, but it will bear a lot of debt risk in the short term. The acquisition transaction is calculated in euros, and the exchange rate during the transaction has been changing, which may increase exchange rate risk. ● The two companies belong to different countries, and there is a certain risk that Anta wants to obtain authentic and complete financial information in Amer Sports. Reasons for Anta's acquisition of Amer Sports: Anta's acquisition of Amer Sports can obtain huge brand equity. It is impossible to build Anta into a brand that can compete with Nike and Adidas in a short period of time. It takes time to build a brand, so acquisition becomes the only option. Anta acquired through high leverage this time. High risks represent high returns. With the help of the acquisition of Amer Sports, Anta will increase its visibility and explore new opportunities at the 2022 Beijing Winter Olympics. After the completion of the acquisition, the operation of Amer Sports will be independent of Anta Sports and other investors, and a separate board of directors will be established for flat 4 management. The direct operation model will bring about a significant increase in gross profit margin and improve operational efficiency. The milestone significance of this acquisition for Anta is that Anta not only avoided frontal competition with Nike and Adidas in the existing market, but also entered the field of high-end sports equipment with market segments. With the help of the channels and brand influence of these high-end brands, Anta will help Anta open the global market with a higher cost performance. Acquisition transaction details and country analysis: The offer price per share is 40 euros, and the total value of the offer is 4.6 billion euros, which is the same as the purchase price proposed by Anta Group on September 12. The offer price is a 39% premium to the closing price of Amer Sports shares on the Nasdaq Helsinki Exchange on the disclosure date, and a premium of 43% to its 3-month undisturbed volume-weighted average trading price. (Lixuan, 2021). From the Sydney Olympics to the Beijing Olympics, it is a golden age for the growth of the sporting goods industry. Anta is beginning to realize the diversification of the Chinese and even international markets. Sports fashionistas and professional sportsmen have put forward higher demands for equipment. Anta's acquisition of high-end brands and perfecting product structure have become a multi-brand strategy, which represents the Chinese economy. The waywardness. As Anta's CEO Ding said, "Don't be the Nike of China, but be the Anta of the world." Valuation and risk management The main logic of Anta's valuation improvement is a multi-brand and internationalization strategy, especially Amer sport's revenue continues to exceed market expectations. Looking ahead, we believe that the future performance of Amer sport will not rule out the possibility of exceeding expectations, benefiting from the improvement of inefficient stores, the upgrading of footwear categories, the moderate expansion of stores, and the extension of multiple series. In addition, although the market is worried about the short-term impact of overseas public health events and the cultivation time of the Chinese market, we believe that the scarcity of many high-quality brands of Amer sport superimposes the company's excellent multibrand operation ability, and Amer sport will bring significant value to the company in the medium term. For risk management, we have noticed many risks. For example, the possible impact of economic slowdown on sportswear retail; Risk of international public health emergencies (covid19); Management challenges and financial fluctuations of international M & A and multi-brand development; And the risk that Anta's future performance is less than expected. All these require Anta to make early warnings and corresponding preventive measures. We will give some suggestions later. Optionalities in the transaction 5 When we inquired about the options in Anta's trading, we learned that the recent options trading ask of Anta was higher than the bid. Its implied volatility in recent years is about 30 to 40, which shows the market's view that the potential trend of stocks is unlikely to have significant price fluctuations. It also means that Anta's shares will not fluctuate much before the option expires. Market reaction to key events and announcements The acquisition by Anta Sports also sparked strong interest in the capital markets, gaining favor with many institutions. After the announcement , Amer Sports' shares rose 8 percent to 38.20 euros ($43.40). Anta Sports closed down 1.9 percent in Hong Kong on Friday. In the period since then Anta shares have fallen 9 percent as investors worry about the company's increased debt and slower growth, as well as increased operational uncertainty. This, coupled with a weaker retail market, is also a negative factor. On Nov. 14, 2018, Bloomberg cited sources as saying that tech giant Tencent Technology intends to join the acquisition consortium for Anta. Spurred by the news, Amer Sports' shares surged more than 5% to $35.88 in early trading. And on the 15th Anta's share price also rose about 3% in response, closing at HK$34.65 per share. Tencent joined the acquisition to give investors more confidence. Investment recommendation The acquisition of Amer Sports by Anta was a premium acquisition. Coupled with the fact that Amer Sports was not doing well at the time and was carrying a huge amount of debt. The total acquisition cost of Anta was 4.64 billion euros, equivalent to more than 40% of Anta's current market value, and the use of an all-cash acquisition would have created a huge financial cost pressure. The acquisition activities take up some cash, but overall cash is still sufficient and will not affect the normal operation of the company. Future outlook Amer Sports' major revenue comes from Europe and the United States, which basically does not overlap with Anta and can form a complementary category and channel. At the same time, by integrating Amer Sports' sourcing and supply resources, Anta can further leverage the advantages of operational synergy and leverage its global supply chain platform to lay a good supply chain foundation for Anta's overseas expansion. On the other hand, the development of China business injects long-term growth momentum. Overall, the Anta acquisition is complementary for both companies and very beneficial for their future growth. Post mortem At one point in November 2019, Anta Sports sold a 5.25% stake in Amer Sports to investors including Anta Sports executives and Sequoia Capital at a discount, after the transaction Anta Sports still holds 57.7% of the voting rights in Amer Sports and enjoys an economic interest of 52.7%. The transaction will maintain effective control over the equity 6 interest and optimize the Group's balance sheet as Anta has indicated its intention to use the proceeds for general working capital. 7 Anta's acquisition of Amer Sports analysis report 8 Economic performance and Financial challenge Anta is China's first sportswear brand with a market value of 100 billion yuan, and it currently exceeds 500 billion yuan. With precise judgment and bold reform courage, Anta has become the leader of traditional Chinese sports brands. In particular, the company’s "Anta, Never Stop'' slogan has attracted many consumers. AmerSports' share in the Chinese market continued to increase before the acquisition, and it increased by 30% after 2016. However, as China With the rapid changes in economic conditions in China, consumers are looking for a balance between performance and price, and the market has become more challenging and competitive than before. Anta Group's acquisition of Finland's Amer Sports is a milestone event in the sports world, because regardless of the standard, importance or potential of the acquisition, this is unprecedented. Although the Anta-led consortium acquired Amer Sports at a premium of 43% ,Amer Sports itself has a large number of high-premium brands. (Yahoo finance). It can enable Anta to better possess the advantages of the industrial chain, financing and information integration after the acquisition. Advantages, understand the effects of economies of scale. Anta CEO Ding said, "Don't be the Nike of China, but be the Anta of the world." In order to reduce the impact of COVID-19, Anta has vigorously developed the sales of Amer Sports in the Chinese online market. On the Chinese sales platform, Anta's sales have increased by 59% compared to the same period last year. It is estimated that sales of Adidas products have fallen by 78% during this period, and Nike's sales have fallen by 59%. (Bain, 2021). Although Anta Group has accumulated a certain amount of experience in the direct operation model and online business, there is still a gap between its mid-to-high-end fashion positioning and other brands. How does Anta develop Armer Sports' mid-to-high-end positioning? challenge. Posted revenue of 22.81 billion yuan ($3.52 billion) in the first half of 2021 on Tuesday, up 55.5 percent over the same period of last year. (Yang, 2021). Although Anta Sports controlled nearly 58% of Amer Sports after privatization Shares, but did not consolidate its statements. In essence, Anta’s strategy is currently viewed as a financial investment rather than a pure merger. Reasons for Anta's acquisition of Amer Sports: Anta's acquisition of Amer Sports can obtain huge brand equity. It is impossible to build Anta into a brand that can compete with Nike and Adidas in a short time. It takes time to build a brand, so acquisition becomes the only option. Anta's highly leveraged acquisition. High risk means high return. With the help of the acquisition of Amer Sports, Anta will increase its visibility and explore new opportunities at the 2022 Beijing Winter Olympics. After the completion of the acquisition, Amer Sports' operations will be independent of Anta Sports and other investors, and a separate board of directors will be established for flat management. The direct operation model will bring about a substantial increase in gross profit margin and an increase in operating efficiency. This acquisition is a milestone for Anta. Anta not only avoided the frontal competition with Nike and Adidas in the existing market, but also entered the segment of high-end sports equipment. With the help of the channels and brand influence of these highend brands, Anta will help Anta open the global market with a higher price-performance ratio. According to China's Xinhua News Agency, Amer Sports shares are valued at 30 euros per share, with a closing price premium of approximately 40%. Such high-premium mergers and overestimation of the value of Amer Sports are risky. 9 Acquisition transaction details and country analysis: Anta uses leveraged financing, and gains and losses can be magnified. During the fiveyear repayment period of the 800 million euro debt assumed by Anta M&A, it provided 1.3 billion euros in debt to the consortium. This makes the debt burden of the enterprise exist for a long time. Increased risk of leveraged financing. Anta uses cash to pay, but it will bear a large debt risk in the short term. The acquisition transaction is calculated in euros, and the exchange rate has been changing during the transaction, which may increase exchange rate risk. From the Sydney Olympics to the Beijing Olympics, it is a golden period for the growth of the sporting goods industry. Anta is beginning to realize the diversification of China and even the international market. Sports fashionistas and professional athletes put forward higher requirements for equipment. Anta's acquisition of high-end brands and improved product structure have become a multi-brand strategy that represents China's economy. Valuation and risk management I collected data through Thomson Reuters’ data terminal and found that after Anta acquired Amer at the end of 2018, the intrinsic value began to increase gradually. The intrinsic value rose from HK $45.64 on December 31, 2018, to today’s HK $84.42. On the other hand, Anta’s price fluctuations rise rapidly, far exceeding the growth of intrinsic value. Starting from HK $37.55 on December 31, 2018, the highest reached HK $188 on June 29 in 2021, and then recently dropped to about HK $125.6. These data show that Anta's value has been overestimated so far. And I found that the main logic of Anta's valuation improvement is a multi-brand and internationalization strategy, especially Amer sport's revenue continues to exceed market expectations. In terms of relevant valuation, we compared the PE, EV/EBITDA, Div Yield, EV/Sales, P/CF and P/B of Anta company and companies in the same industry. What needs to be mentioned is that we found that the ratio of div yield of Anta company in the same industry in the world is low, only 0.96%, while the industry median is 2.34%, and Anta ranks 47th in the global ranking. Assuming no increase or decrease in dividends, when the stock price falls, the yield will rise. Contrariwise, when the stock price rises, it will fall. Because the dividend yield changes relative to the stock price, the dividend yield usually looks abnormally high for stocks with rapidly falling value. Anta Co. on the contrary, the lower div yield also proves that their stock value has been rising. However, these do not rule out the risk that Anta company is forced to reduce dividend payout or income due to the decline of stock value. Looking ahead, we believe that the future performance of Amer sport will not rule out the possibility of exceeding expectations, benefiting from the improvement of inefficient stores, the 10 upgrading of footwear categories, the moderate expansion of stores, and the extension of multiple series. In addition, although the market is worried about the short-term impact of overseas public health events and the cultivation time of the Chinese market, we believe that the scarcity of many high-quality brands of Amer sport superimposes the company's excellent multibrand operation ability, and Amer sport will bring significant value to the company in the medium term. For risk management, we have noticed many risks. For example, the possible impact of economic slowdown on sportswear retail; Risk of international public health emergencies (covid19); Management challenges and financial fluctuations of international M & A and multi-brand development. And the risk that Anta's future performance is less than expected. All these require Anta to make early warnings and corresponding preventive measures. Optionalities in the transaction When we inquired about the options in Anta's trading, we learned that the recent options trading ask of Anta was higher than the bid. Its implied volatility in recent years is about 30 to 40, which shows the market's view that the potential trend of stocks is unlikely to have significant price fluctuations. It also means that Anta's shares will not fluctuate much before the option expires. According to the most traded options data recently displayed by Anta, the put option is 23676 of total 45637 today, which is more than the call option 21961. The ratio of put to call is about 1.08. Compared with our previous valuation analysis and risk analysis, we can see that the whole market is aware that Anta's current market value is overvalued, but it also has a certain growth potential. Market reaction to key events and announcements The acquisition by Anta Sports also sparked strong interest in the capital markets, gaining favor with many institutions. After the announcement , Amer Sports' shares rose 8 percent to 38.20 euros ($43.40). Anta Sports closed down 1.9 percent in Hong Kong on Friday. In the period since then Anta shares have fallen 9 percent as investors worry about the company's increased debt and slower growth, as well as increased operational uncertainty. This, coupled with a weaker retail market, is also a negative factor. On Nov. 14, 2018, Bloomberg cited sources as saying that tech giant Tencent Technology intends to join the acquisition consortium for Anta. Spurred by the news, Amer Sports' shares surged more than 5% to $35.88 in early trading. And on the 15th Anta's share price also rose about 3% in response, closing at HK$34.65 per share. Investment recommendation Anta's acquisition of Amer Sports was a premium acquisition. Coupled with the fact that Amer Sports was not in a good operating position at the time and was carrying a huge amount of debt. Over the past few years, Amer Sports' development has been relatively sluggish, with the company's operating revenue growth rate of only 3.5%, -1.8% and 4% from 2016-2018, and net profit growth rate declining year after year at only 7.7%, 6.9% and -4.7%. In 2017, Amer's net sales increased by 2% to €2,685 million and net profit fell by 26% to €93 million. Considering 11 Amer's net debt of €820 million and foreign exchange exposure, this might be a drag on Anta's margins. In addition, Anta's cash flow has declined. Anta's financial report shows that in the first half of 2018, its net operating cash flow fell to 1.476 billion yuan from 2.058 billion yuan in the same period of 2017, down about 28% year-on-year. The total acquisition cost of 4.64 billion euros, equivalent to more than 40% of Anta's current market value, will form a huge financial cost pressure by using all-cash acquisition. In 2018, Anta's gearing ratio was 27%, which was significantly lower than other comparable companies. Based on the 2018 data, Anta's gearing ratio will increase to about 45% after the completion of the acquisition. Compared with its peers Nike (60%), Adidas (56%) and 361 Degrees (49%), Anta is still at a normal level. The acquisitions took up some cash, but the overall cash is still sufficient and will not affect the normal operation of the company. Although the valuation is high, it is reasonable. The offer price is €4.64 billion, for a total funding requirement of €5.663 billion. The total funding requirement for the acquisition is €5,663 million, including the offer price of €4,640 million (€40/share), repayment of Amer Sports' existing debt of €950 million, financing and other transaction costs of €73 million. However, the acquisition at a premium is acceptable for Anta and will not make Anta's debt ratio abnormal, and Amer Sports has scarcity. In summary, the acquisition of Amer Sports is beneficial to the long-term expansion and development of Anta's business, especially overseas business. Future outlook Amer Sports' main revenue comes from Europe and America, which basically has no overlap with Anta and can form complementary categories and channels. At the same time, by integrating Amer Sports' procurement and supply resources, Anta can further leverage the advantages of operational synergies, and with its global supply chain platform, lay a good foundation for Anta's supply chain for overseas expansion. On the other hand, the development of China business injects long-term growth momentum. 2017 Amer Sports revenue in Asia was €390 million, accounting for 15% of total revenue, of which revenue in China was only €120 million, accounting for 4%. Compared to other global established sports brands, the share of revenue in China is generally over 10%. The development of the business in China has been the main driver of growth in recent years. Considering that we expect to leverage Anta's brand operation experience and resources in China in the future, Amer Sports' growth potential in China and Asia is worth looking forward to. On the other hand, with the policy dividend, the scale of China's ice and snow industry is expected to reach 1 trillion yuan in 2025, driving the growth in demand for ski apparel and supplies, which will further benefit Amer Sports' growth. Overall, the Anta acquisition is complementary for both companies and is very beneficial for their future growth. Post mortem 12 At one point in November 2019, Anta Sports sold a 5.25% stake in Amer Sports at a discount to investors including Anta Sports executives and Sequoia Capital, after the transaction Anta Sports still holds 57.7% of the voting rights in Amer Sports and enjoys a 52.7% economic interest. The transaction will maintain effective control over the shareholding and optimize the Group's balance sheet, as Anta has indicated that it intends to use the proceeds as general working capital. Overall, Anta's cash flow was affected by the use of a large amount of capital after the acquisition of Amer, but the impact on its own normal operations was manageable. Accordingly, Anta Sports' investment loss in Amer Sports is $650 million in 2019 and approximately $720 million in the first half of 2020. Accordingly, Anta Sports' investment loss in Amer Sports is $650 million in 2019 and approximately $720 million in the first half of 2020. Anta's investment in Amer Sports does not pay off in the short term, but with Amer Sports' channel expansion and market recovery, it is expected to turn losses into profits in the future. 13 Appendix: Chart and ratios for valuation part. Screenshot from Refinitiv Eikon, Thomson Reuters Other data for relevant valuation. Screenshot from Refinitiv Eikon, Thomson Reuters 14 References: Yang, Y. (2021). China's Anta Sports posts solid growth in first half of 2021. Retrieved from https://www.chinadaily.com.cn/a/202108/24/WS6124bec0a310efa1bd66ad6e.html Lixuan, Luo. (2021). Explain in detail Anta's 36 billion yuan acquisition of Amer Sports Retrieved from: China Xinhua Publishing House http://www.sjfzxm.com/global/en/570588.html
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Running head: CIMC ACQUISITION OF MAERSK

China International Marine Acquisition of Maersk Container Industry

2
CIMC ACQUISITION OF MAERSK
Description of Case Study Subject
On Monday, September 27, 2021, the container logistics service provider A.P.
Moller - Maersk (Maersk) entered into an agreement to offload its reefer producer, Maersk
Container Industry (MCI), to China International Marine Containers Ltd. (CIMC). On cash
and debt-free foundation, the purchase is valued at $987.3 million. The 2,300 MCI
personnel will become CIMC employees following the completion of the acquisition, which
is anticipated in 2022 or sooner(Hand, 2021). CIMC is headquartered in Shenzhen,
China, and is ranked on the Shenzhen Stock Exchange and the Hong Kong Stock
Exchange. The transaction solidified CIMC's position as the world's leading container
manufacturer(Taiwan, 2021). The Maersk company exited container production as a
result of the transaction, which comprised MCI's reefer facility in Qingdao, China, and
research and test engineering facilities in Tinglev, Denmark.
China International Marine Containers (Group) Co., Ltd (CIMC) is a Chinese firm
that primarily manufactures and sells transportation equipment like containers, road
transportation vehicles, and aviation ground-handling machinery. CIMC has been the
world's largest container-manufacturing firm since 1996, having a share of the market of
more than 40% in the global container business and 56% in the dry marine container
sector. During the Covid-19 outbreak, the desire for MCI's reefer boxes skyrocketed as
trade flows and container transportation was hampered(Dixon, 2021). Their technology is
what led to CMIC's interest in the division and led to its purchase.
Rationale

3
CIMC ACQUISITION OF MAERSK
A.P. Moller – Maersk agreed to sell its container manufacturing unit to China
International Marine Containers Ltd. in a deal that will benefit both companies' long-term
strategic priorities. Maersk is concentrating its efforts on logistics and distribution, while
China is solidifying its position as the only maker of cargo containers(Maersk Sells
Container Manufacturing Business as China Solidifies Lead, 2021). While reinforcing the
economies of scope among the key sectors of Maersk's global integrator propositions,
the company assessed the strategic alignment of MCI and chose to find a good place for
MCI that can enable the company to keep improving its reefer venture through ongoing
development and devoted funds from a novel buyer. Maersk has had a longstanding
connection with CIMC for over 30 years and was excited to extend that cooperation. China
has been concentrating its efforts on consolidating its lead in container manufacture, with
the government pushing enterprises to expand their procedures.
As of 2020, the ministry of Transportation, Sector, and Information Technology has
been collaborating with the container industry to enhance production(Maersk Sells
Container Manufacturing Business as China Solidifies Lead, 2021). As per the Ministry of
Transportation, China is producing 500,000 containers every month, up from 200,000
earlier. The initiatives to boost container manufacture were made in response to a global
box scarcity. As per Chinese officials, the number of enterprises facing a box scarcity has
decreased, however, there are still transitory shortages in several ports. They are pushing
the sector and ports to collaborate in order to relieve additional bottlenecks.
Timeline

4
CIMC ACQUISITION OF MAERSK
The initial step in the acquisition of CMI and MCI is the collecting of data and
material linked to case studies. We must finish the information gathering of acquisition
details and terms in this work. Consequently, we will discuss CMI and MCI's marketing
strategy and ...


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