[Text|High-tech LED reporter Luo Shenghua] In the era of LED lighting, multinational companies have also encountered an "identity crisis" while encountering Chinese brand encirclement in the international market.
On March 31, Jinshajiang Venture Capital announced that it had successfully acquired 80.1% of Philips' Lumileds shares for US$3.3 billion by M&A funds supported by China-Pacific Resources Development and Investment Co., Ltd. and Nanchang Industrial Holding Group Co., Ltd. For a moment caused an uproar.
Previously, Lumileds was spun off from the Philips Group and was unanimously considered to be independent. Although some insiders speculated that domestic companies might be listed in Lumileds after listing, no one would have guessed that domestic companies would buy it. The local company's acquisition of international lighting giants, while meeting the small "vanity" of the industry, seems to represent the victory of local enterprises to a certain extent.
More than a month has passed, but the enthusiasm for discussion in the local lighting industry is not over yet. And this incident has once again reminded LED lighting companies that in the LED competition node, enterprise transformation has arrived. In the LED lighting era, local companies and multinational companies are at the same starting line. At the end of the competition, it is not known who the deer will die.
Remove the "package"
Different from the vertical integration of Chinese companies involved in the industrial chain, multinational companies are splitting their businesses according to market changes to cope with new changes in the global LED lighting market, especially in China.
Of course, the strong squeeze from Chinese LED lighting companies is also the reason why these multinational companies choose to dig deep into their own advantageous businesses, giving up or saying that they are looking for a better way for businesses that face huge risks in their future profit margins.
In the case of Philips, in July 2014, Philips announced the splitting of its LED packaging division, Lumileds and Automotive Lighting, into a new independent company. It also pointed out that the independent operation of subsidiaries can focus more on LED R&D and business development, and at the same time, it will also seek third-party strategic cooperation opportunities. In the past half year, the consortium led by Jinshajiang Venture Capital announced the acquisition of Philips Lumileds.
"Philips originally planned to spin off its wholly-owned subsidiary Lumileds and the automotive lighting business, making them an independent company in the first half of 2015. But on March 31, 2015, Philips announced the sale of Lumileds 80.1% for $3.3 billion. The shares are given to GSR GO Scale Capital, which is a very good transaction price in the LED industry." An industry insider told reporters.
Less than a month after Philips sold Lumileds, German lighting giant Osram announced on April 22 that it will launch a new wave of plans to split or sell its lower-profit general lighting business and establish an independent company, OSRAM. Said that this move is intended to focus more on high-margin automotive lighting and LED components business.
In an interview with Bloomberg, Osram's chief financial officer said that about 60% of the 1.1 billion euros (about 7.361 billion yuan) of optoelectronic semiconductor sales units demand for LEDs from the automotive and industrial sectors.
Demand from the automotive industry contributed about 30% of Osram's total revenue, because of the collateral effect and the sales of Osram's traditional bulb business – many entry-level cars still use traditional bulbs like halogen lamps.
On March 31, Jinshajiang Venture Capital announced that it had successfully acquired 80.1% of Philips' Lumileds shares for US$3.3 billion by M&A funds supported by China-Pacific Resources Development and Investment Co., Ltd. and Nanchang Industrial Holding Group Co., Ltd. For a moment caused an uproar.
Previously, Lumileds was spun off from the Philips Group and was unanimously considered to be independent. Although some insiders speculated that domestic companies might be listed in Lumileds after listing, no one would have guessed that domestic companies would buy it. The local company's acquisition of international lighting giants, while meeting the small "vanity" of the industry, seems to represent the victory of local enterprises to a certain extent.
More than a month has passed, but the enthusiasm for discussion in the local lighting industry is not over yet. And this incident has once again reminded LED lighting companies that in the LED competition node, enterprise transformation has arrived. In the LED lighting era, local companies and multinational companies are at the same starting line. At the end of the competition, it is not known who the deer will die.
Remove the "package"
Different from the vertical integration of Chinese companies involved in the industrial chain, multinational companies are splitting their businesses according to market changes to cope with new changes in the global LED lighting market, especially in China.
Of course, the strong squeeze from Chinese LED lighting companies is also the reason why these multinational companies choose to dig deep into their own advantageous businesses, giving up or saying that they are looking for a better way for businesses that face huge risks in their future profit margins.
In the case of Philips, in July 2014, Philips announced the splitting of its LED packaging division, Lumileds and Automotive Lighting, into a new independent company. It also pointed out that the independent operation of subsidiaries can focus more on LED R&D and business development, and at the same time, it will also seek third-party strategic cooperation opportunities. In the past half year, the consortium led by Jinshajiang Venture Capital announced the acquisition of Philips Lumileds.
"Philips originally planned to spin off its wholly-owned subsidiary Lumileds and the automotive lighting business, making them an independent company in the first half of 2015. But on March 31, 2015, Philips announced the sale of Lumileds 80.1% for $3.3 billion. The shares are given to GSR GO Scale Capital, which is a very good transaction price in the LED industry." An industry insider told reporters.
Less than a month after Philips sold Lumileds, German lighting giant Osram announced on April 22 that it will launch a new wave of plans to split or sell its lower-profit general lighting business and establish an independent company, OSRAM. Said that this move is intended to focus more on high-margin automotive lighting and LED components business.
In an interview with Bloomberg, Osram's chief financial officer said that about 60% of the 1.1 billion euros (about 7.361 billion yuan) of optoelectronic semiconductor sales units demand for LEDs from the automotive and industrial sectors.
Demand from the automotive industry contributed about 30% of Osram's total revenue, because of the collateral effect and the sales of Osram's traditional bulb business – many entry-level cars still use traditional bulbs like halogen lamps.
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