Thursday, April 6, 2017

Last year, the global automotive industry M & A scale, the maximum ever '



[Korea goyounghun financial newspaper reporter] last year, the global auto industry mergers and acquisitions (M & A) had a record maximum.

5 days, according to industry trends report Samjung KPMG M & A in the global automotive industry in 2016 showed that in the last 10 years ever in the maximum number of transactions and transaction amounts.

December 31 to collect the Bloomberg (Bloomberg) M & A analysis of the data, in 2016 the automotive industry M & A transactions total number of 598 cases last year, turnover came in at 87.5 billion US dollars.

Samjung KPMG Economic Research Institute was diagnosed and companies dominate the new technologies, like the M & A for faster entry of the initial market conditions, which are diversified, autonomous cars, Connected car, such as the automotive industry paradigm of the internal combustion engine is changing.

2011 M & A transactions in the automotive industry, a number of US companies are involved, but accounted for 28.8% in 2016 has exceeded one-third of the total number of global M & A transactions to 34.1%. It also recorded a 2016 turnover of 53 billion US dollars, and considering that the turnover of the size of the automotive industry M & A total of 87.5 billion US dollars US companies have led the M & A in recent years the automotive industry.

Germany, Great Britain, etc., while number of transactions of M & A is involved European companies also increased the share in 2016 compared to 2011, China, Japan, Korea, etc. The companies include M & A cases share belongs to the Asian countries showed that the tendency to decrease.

Samjung KPMG Economic Research Institute, since 2014 the number of domestic M & A transactions between companies in the global automotive industry, but increased significantly the number of cross-border M & A transactions that were analyzed showed a tendency to atrophy.

2016 domestic M & A transaction number is 517 cases, cross-border M & A transaction number is a domestic M & A in the automotive industry, 81 cases have accounted for 86% of the total M & A market. Typically, such high transaction costs and increased global risk, trade protectionism strengthening international mergers and acquisitions than two euros can be seen as a strengthening tendency to favor domestic mergers and acquisitions.

There is also seen to mobilize the business capabilities of the domestic auto industry as a strategic choice to strengthen its global competitiveness. Referring to, domestic M & A cross-border auto industry major economies, the United States, China, South Korea showed relatively high share of domestic M & A, Germany, UK, Japan, cross-border M & A.

◇ expand intercultural Industry M & A

After 2014, but it increased sharply and two kinds of inter-industry M & A in the automotive industry has continually reduced M & A between the same industry. Cross of 2016 in the automotive industry M & A M & A are two kinds of industries accounted for 81.3% of the total 486 cases. This is a result showing that recent convergence between the automotive industry and other industries, and quickly.

Samjung KPMG Economic Research Institute "In general, the argument between homeopathic purposes, and parts Series furious focused on local brand acquisitions in emerging markets to increase market share," said "for this purpose, M & A is reduced and there is an increasing interspecific M & A It means that the auto companies have recognized that the future automotive market requires a previous and other new supply chain or ecosystem, "he said.

Particularly showing the appearance of the automotive industry and telecommunications, electricity ∙ fusion of electronics, software industry increased in recent years.

In addition, new technology ecosystems can be summarized in the battlefield and more lightweight, greening. With the advent of the electric drive and the autonomous navigation, connected car last car has been to combine a number of techniques for a variety of sensors and communication equipment, electronic components, software, and so on based on the IT.

In addition, due to the electric vehicle mileage of a hydrogen car, new parts for increased efforts Autonomous lightweight car of the future is expected to gradually increase.

As the Volkswagen global cooperation continues to reduce carbon emissions by diesel gate and the Paris Convention on Climate Eco it is a very important topic in the automotive industry. Notably the recent environment-friendly cars is being considered in terms of economic efficiency over the regulatory aspects. 2016 Tesla had acquired the Solar City (Solarcity) of solar light manufacturer, is storing electricity produced by solar power in the future ESS (Energy Storage System) power pack and plan to use it to power the electric vehicle.

Supply chain in the automotive industry (Supply Chain) is also changed. It is the opinion that the automobile companies 'vertical integration' relationship broke supplied the core components through the rear internal collaboration based parts maker affiliated to the inside. Instead, it seems the trend and actively promote the sale of family companies expanding operations to a variety of suppliers to choose from. Typically, was in 2016, Nissan sold a series parts up to sign Carl Sonic Khan Say (Calsonic Kansei), it plans to invest in the next generation of vehicle technology as a secure funding through it.

Samjung KPMG Automotive Industry Division wiseunghun deputy said, "look at the 2016 M & A trends in the auto industry moves associated with the composition of the new technology ecosystem with part integration dismantling of the automobile industry is captured" and "M & A between different industry to a new technology ecosystem composition is bars that are expected to become increasingly active, then the next argument had expected would be a major challenge to the success of M & a to integrate different corporate cultures. "



Daily Economic News Finance FNTIMES - commercial reprint, copy, distribute prohibited purposes under the Copyright Act
Copyright ⓒ Korea's Financial News & FNTIMES.com