The 21st century economic coverage on September 23 news on September 18, the department of commercial affairs counter-monopoly bureau convened about “purchases Delve operator to concentrate the counter-monopoly examination general” the close-door meeting, including the General Motors and Delve, as well as the Chery automobile and Chinese Automobile Circulation Association simultaneously appeared at the scene.

In the conference, including Chery and automobile circulation association Chinese representative primarily, expressed regarding has purchased Delve’s worry general, and hopes that the department of commercial affairs put out enough time, investigated this merger and acquisition the impact which probably brought to China; General and Delve considered stemming from the cash flow, then hopes that China allows to pass as soon as possible, lets Delve go out of the chapter 11 bankruptcy protection.

And uses in common internal news from Delve, whether in early October to examine and go out of the chapter 11 bankruptcy protection through the buy-back, is important regarding Delve. On September 21, newspaper reporter sent a telegram to the Delve Asia-Pacific region public affairs and CMO Jiang Jian, the opposite party said that “, because the counter-monopoly examination was being carried on, for did not affect the verification fairness, foreign made the commentary inconveniently.”

Jiang also appealed healthily that invites department of commercial affairs and domestic related organization considered Delve reorganizes the special details, as soon as possible through the counter-monopoly examination, “a healthy Delve, on automobile industry in China, and even whole world’s automobile industry will have the positive effect.”

China’s counter-monopoly examination duty

On August 31, general and Delve formally submitted the counter-monopoly to apply to the Chinese commerce ministry, simultaneously also according to Russia, Mexico, European Union and other various countries’ antimonopoly laws stipulated that to the above countries and regions’ relevant authority, applied for the counter-monopoly examination.

On September 2, the department of commercial affairs to the related line organization, as well as purchased the Chinese Enterprise questionnaire opinion which Delve involved general, and requested on September 4 to submit the opinion, afterward issued on September 16 held the notice of conference.

On January 1, 2008 “Antimonopoly law” which started to implement stipulated according to the Chinese government that is purchased Fang He to purchase the side to be over 400 million Yuan in sales volume in China, as well as both sides were bigger than 10 billion Yuan in whole world’s sales volume in the past, must accept the counter-monopoly investigation, this was general purchases Delve to undergo the Chinese commerce ministry counter-monopoly examination the reason.

After this time is the General Motors in 1999 strips Delve completely, the first decision buy-back Delve. In May, 1999, to comply with the global spare part industry globalization and specialized tide, Delve starts to be separated from general. At present accounts for Delve global business proportion general, already by being separated at the beginning of over 80% drop 30%.

In 2005 American automobile profession landslide, because the welfare and operation cost are excessively high, eventually causes Delve to apply for the chapter 11 bankruptcy protection. Before 2005, the debt freezes, Delve starts vigorously the conformity, simultaneously depends upon the syndicate loan to maintain the cash flow. In 2009 is away from the chapter 11 bankruptcy protection already 4 years, financing and cash flow become very major problem, if does not have the new investment again, Delve by again bankrupt settlement. The General Motors have to get rid to save Delve.

Delve until now was still the General Motors biggest supplier, in 2008 occupied the general quantity purchased about 11.3%, obviously, Delve went bankrupt and is out of stock to the general attack is fatal.

Some analysts analyze the extrapolation, short-term, general cannot look at Delve to give way, is long-term, after does not remove the financial crisis, American automobile output rise and financing brisk trade. When the investor realized when the spare part profession value is underestimated, may sell to Delve general again the new investor.

Delve “kidnapping” general?

Reorganizes Delve’s plan to involve three aspects general: First is Delve’s whole world changes the service, in addition Delve in the four factories in US, this service 100% is used in common takes away, new Delve will have no longer this part of service. At present this service has obtained the authorization of global each relevant country through the counter-monopoly procedure, the US government and European Union separately authorizes this service, the Chinese commerce ministry in August also to authorize on July 13 and on August 13 to pass.

Second is Delve in the bad assets in US, including production suspension factory, equipment and so on. This part of property will keep inside Lao Delve, after this property properly processes, Lao Delve will also die in bed of old age.

The third service is except the above two items outside, remaining all Delve’s services, is reorganizes later “newly Delve”, including Delve in China, Asia, Europe and other place the services, but newspaper each country examines and approves now is this “newly Delve” service , to continue provides the service for the customer is also this “newly Delve”.

According to reconstruction plan, “newly Delve” the master is the creditor organization which the General Motors and two investment companies coordinate, the General Motors will hold over 80% stockholder’s rights, what needs to pay attention, this reorganization plan, has obtained American chapter 11 bankruptcy protection court’s authorization on July 30, certainly the reconstruction plan realized the premise is, through each counter-monopoly examination of country, Delve goes out of the chapter 11 bankruptcy protection.

Has the Delve insiders to tell the reporter, the application country examination is to merging whether violates this country antimonopoly law to carry on the examination. “Theoretically, each country examines and approves the standard should only then, be this merger and acquisition whether forms the monopoly to this profession.”

According to using in common with Delve’s agreement, in future board of directors, will agree with the non-gain absolute superiority general. According to the plan, general and board of creditor appoints two trustees separately, then both sides found two independent directors again separately, finally this 8 individual same places, appoint the ninth independent director together.

Although accounts for 80% stocks general, but does not occupy the majority vote in the board of directors, this is a balanced composition of shareholders. General and Delve signs store clearly stipulated that general does not participate in Delve to manage daily, Delve manages the important decision, if involves to the populaces, BMW, Toyota and other competitors, the board of directors is also authorized to request the general trustee not to participate in the decision-making, to prevent other customer information divulging.

The worry of Chinese Enterprise

The Delve bankruptcy reorganization is experiencing now the most crucial time, Delve’s floating capital at present by “day” computation. “If cannot go out of the chapter 11 bankruptcy protection as soon as possible, to reorganize in Mongolia very big shadow, but Delve’s dominoes, once drops down, will affect will be very big, Chinese Enterprise will not be exceptional.”Participates in the conference participant of department of commercial affairs close-door meeting to say.

The Chinese service has the important strategic sense regarding Delve, last year the Delve global sales were 16 billion dollars, the Chinese service occupy 10%, but its huge potential and American market murky, let Delve gradually change the service center of gravity China.

Delve in 1995 entered China, at present includes Chery, the Great Wall, Beiqi, Huachen and auspicious almost all local auto enterprises is Delve’s customer. Delve product which provides for these plants, quite rich, and key. It is known that in the steering system sells completely after general, the new Delve’s service will involve four big departments, first is the electron and security; The second department is electrical construction; Third is the power unit; Fourth is the Delve heat change.

Investigates after the reporter in every way, as Delve in China’s big customer, worry of Chery mainly has two; first, once becomes the Delve major stockholder general, Delve each aspect quality resource to its incline; Another worry is information divulging. As a result of Delve and general information sharing, will cause with Delve to cooperate other plant core information to be shifted general.

Therefore Delve had evidently underestimated this China examines the value manner, “the American counter-monopoly investigated for two weeks ago to authorize this merger and acquisition, now this examination, in many countries is only a procedure question, we once think that in China was also only a procedure question, moreover examined the standard should be only, whether the merger and acquisition had the monopoly suspicion.”

Is out of stock is also one of matters Chinese Enterprise was worried specially, on September 18 examining committee, Chery took the Chinese automobile enterprise representative, was clear about opposition general buy-back Delve. Several years ago between Delve and Chery once presented excessively similar sudden being out of stock, let latter very be once passive, has to seek for the source of goods.

Chinese Automobile Circulation Association assistant deputy secretary-general Chen Dihong believes that we did not oppose purchases Delve general, but must have enough time to carry on the investigation, suggested the department of commercial affairs specially, the direct and indirect loss which will bring to the Chinese automobile enterprise carries on the investigation to this merger and acquisition.

“Not only that in supply agreement and product price’s stability and so on aspects, Delve should also make the written commitment.”Chen Dihong finally emphasized. (This article originates: The 21st century economic coverage author: He Fang)