"German unions vowed to obstruct China's acquisition of Osram" - When the German government intervened in the German acquisition in Germany, IG Metall, Germany's largest trade union organization, said recently that it would prevent the German lighting group Osram May be acquired by Chinese companies. “Chinese investors are becoming scapegoats for European problems,†said Dr. Luo Liyang, a Chinese scholar in Berlin, Germany, on the 15th. In the German Business Daily, published on Monday, IG Metall's Bavarian branch, Wexler, said in an interview that the organization would resolutely oppose any acquisition attempt, given the negative consequences that the acquisition may have on OSRAM workers. He said that potential acquisitions should not only be viewed from the perspective of shareholders, but should also see the impact on other stakeholders, "especially the interests of employees must be properly considered." He believes that OSRAM is currently in a good position in the market, has a solid capital structure, and because it focuses on technological innovation and customized solutions, it has attractive growth potential and therefore “no need for partnersâ€. According to reports, Wexler is the vice chairman of the supervisory board of Siemens Medical. "The clear statement of the trade union is unusual." The "Business Daily" pointed out that industry insiders said that the trade union's statement increased the opposition to the Osram acquisition side, apparently putting more pressure on the OSRAM leadership. IG Metall is the largest trade union organization in Germany with nearly 2.3 million members. Just last Wednesday, European trade unions such as IG Metall also launched a steel worker demonstration in Brussels to protest against cheap steel from China and the EU's strict energy regulations for the steel industry. IG Metall's Bavarian branch said on its official website that Chinese investors have been buying Osram for some time. The criticism of this program is that China's interest is mainly in technical knowledge and related patents. In other words, after the acquisition, OSRAM's key expertise will face significant risks, customers will be lost, and Germany will be affected as the investment of choice. The Financial Times quoted IG Metall spokesman Juntel as saying on the 14th that what people are really worried about is that any potential acquirer just wants to “suck Osram’s technology†and transfer production to a location outside Germany. Founded in 1919, OSRAM is a company that produces lighting equipment and semiconductors. After the spin-off from the Siemens Group in 2013, Siemens still holds a 17.5% stake in OSRAM. Due to differences in development strategy, Siemens is preparing to sell its shares. According to media reports, there are currently two Chinese capitals interested in acquiring Osram and holding relevant negotiations, but they have not submitted exact quotations. German financial network said that since the Chinese capital was acquired in September this year, Osram's share price rose linearly. Osram's current market value is about 5.2 billion euros, twice as much as it was when it went public. In response to the union’s opposition to the acquisition, OSRAM declined to comment. “The Chinese have been waiting.†The “Business Daily†said that since the German Ministry of Economic Affairs stopped the Chinese acquisition of German semiconductor equipment manufacturer Ai Siqiang and said that it would investigate the Osram acquisition, the Chinese acquisition of German companies has become more complex. The British "Financial Times" pointed out that Chinese investment in German industry has encountered increasing resistance, and some Germans are worried that some of the country's most advanced technology will fall into the hands of Chinese. “German Deputy Prime Minister and Minister of Economy Gabriel is the leader of protectionism. The German Ministry of Economic Affairs has also proposed a draft law that will make it easier for the government to prevent Chinese acquisitions.†But Germans who support Chinese investment say that the German trade unions Concerns over the acquisition that could lead to job losses and factory closures are overdone. For example, when Midea acquired KUKA, it promised to retain its existing positions and factory sites for the next seven and a half years, and will not delist or restructure the company during this period. The union’s opposition to whether it can prevent Osram from being acquired is also a question. The Wall Street Journal said that trade union organizations have strong influence in European countries, including Germany and France. In September this year, due to the opposition of the German company's trade unions, the merger of the US industrial gas supplier Praxair and the German Linde Group fell. According to the Financial Times, it is still unclear how the German Metal Industry Union will stop the acquisition if the acquisition is supported by representatives of all shareholders of the Board of Supervisors. Of the total of 6 workers’ representatives in the trade union, only two entered the OSRAM Supervisory Board. A union spokesman said, "The shareholder representative will obviously avoid any conflict with the workers' representatives." But a person familiar with Osram's strategy said that the German Metal Industry Union tried to “create a protective wall†and an “insecure feeling†around the company to deter potential acquirers. Germany's Berlin Chinese scholar Luo Liyang said to the author on the 15th that the EU is facing various problems, the competitiveness of enterprises is declining, the refugee crisis and the relationship with the United States are alienated, etc. IG Metall opposes the acquisition of Osram by Chinese capital, which is a kind of protection. Doctrine of behavior. He believes that as long as it is handled properly, Chinese acquisition of German companies can create a win-win situation. Simply refusing to buy will only expose many loss-making companies to risk of collapse, while others will miss development opportunities, which is not good for workers. Rice Mill Tractor,Ostad Rice Huller,Rice Mill Rubber Roller,Rice Huller HuangShi Stee Metal Material Technology Exploitation Co.,Ltd , https://www.wosenstechnology.com
August 29, 2021