Chapter 1556 - The Fear of Vicious Acquisitions (1/2)

Why did multinational corporations want to acquire Country Z’s enterprises?

Because Country Z’s underdeveloped market was too tempting.

Country Z’s population was not only large, but it also had an alarming consumer potential as well as thousands of years worth of brilliant cultural heritage. These caused foreign investors to crave the acquiring of Country Z. Furthermore, the people of Country Z were hardworking, pragmatic, could create value, and were shockingly effective.

For example: when the people of Country Z opened a hair salon in Italy, there was no one who could compare to them.

An Italian-owned hair salon would have 8 fixed working hours a day. Past the working time, they would reject customers.

However, a hair salon opened by the people of Country Z would operate 24/7, non-stop. They would also adopt a three-shift system to improve flexibility and effectiveness.

Assuming that the Italians managed to cut the hair of 50 customers in the 8-hour shift, they would earn 5,000 yuan. However, people from Country Z would be able to cut the hair of 150 customers in their 24-hour shift and earn 15,000 yuan.

Be it the effectiveness or the profits of the hair salon, Country Z’s salon would surpass the Italian’s by at least three times.

The 150 heads styled was a representative of Country Z’s effectiveness.

The 15,000 yuan earned was a representative of Country Z creating value.

These two points showed how no country could match up to Country Z.

It was not that foreign investors did not try to invest in Country Z’s appealing market. However, upon entering the country, investors realized that they were inferior to the local enterprises’ competitive pricing and efficiency. Hence, the acquisition allowed the competitors to wait at ease.

This kind of acquisition was very cruel. On one hand, it could directly obtain the mature sales channels of the enterprises in Country Z, expand its market network, increase the pool of talented individuals as well as consumer resources. On the other hand, buying over opponents gave one the opportunity to completely eliminate them, directly overshadowing their brands. This monopoly greatly benefited oneself and led to a great surge in profits.

Throwing money at a company that you could not compete with—this was multinational corporations’ strongest yet most despicable method.

Foreigners’ goals in businesses were never disguised, similar to years ago when they launched a joint aggression war against Country Z.

Direct violence!

It was disgustingly awful.

Wen Xinya was able to anticipate the chaos faced by Lanxin Company. After keeping silent for a short while, she said, “Foreign multinational groups that like to engage in vicious mergers and acquisitions have always had a ferocious appetite. The health supplements in Country Z is the fattest piece of meat. Since the opposition is already interested in this industry, it is impossible for them to only go after Lanxin Company. Although Lanxin Company has incredible growth potential, it is still not a listed company and may not satisfy the opposition’s appetite. As long as other companies have wealth and power, why wouldn’t the opposing party try to acquire them as well?”

Was it worth only going after Lanxin alone?

Of course not!

Country Z’s health supplements’ development history was too shallow, and its foundations were too weak. Although its domestic developmental standard was quite good, there were no products that had the potential to be developed for overseas use and become an untouchable giant in the market.

That was why it was so easy for foreign multinational corporations to acquire state-owned enterprises and not waste much effort. The keyword was “money”.

If you had the ability to eat the entire piece of meat, why settle for a piece only?