This may be the first case in which China is completely controlled by foreign companies after it plans to cancel the foreign-invested ratio.
Editor’s note: This article is from “Future Car Daily” (WeChat public ID: auto-time), author: NIU Xiao Tong.
Author | Niu Xiaotong
Edit | Liang Chen
A milestone change is coming for the sensitive issue of the shareholding ratio of joint ventures.
On September 26, Sichuan Hyundai confirmed to the Future Auto Daily (ID: auto-time) that Hyundai Motor will fully acquire Sichuan Hyundai in early 2020, which is 100% owned by Sichuan Modern. After the completion of the acquisition, Hyundai Motor may have a comprehensive technology sharing of Sichuan Modern, and Sichuan Hyundai’s name may also change.
Sichuan Hyundai, a Sino-Korea joint venture car company, was established in August 2012 by Sichuan Nanjun Automobile Group Co., Ltd. and Hyundai Motor Co., Ltd. Before the Sino-foreign joint venture car stocks were not liberalized, Sichuan Hyundai held 50% of each share at the beginning.
August 27th, Sichuan Modern has just had a round of equity change, Sichuan Nanjun exited, its Sichuan Ruiyu Real Estate became a major shareholder, and the proportion of Sichuan Ruiyu Real Estate increased to 67.27% through capital injection. The stock ratio fell to 32.73%.
Sichuan Hyundai did not further explain the change in the stock ratio. However, if Hyundai Motor can complete the acquisition, this may become the first case in which China is completely controlled by foreign companies after the plan to cancel the foreign-invested ratio. .
In the Chinese auto market, the stock ratio problem has always been a sensitive topic between local companies and foreign companies. The stock ratio determines the right of shareholders to speak to the company and the actual profit. In 1994, the State Planning Commission issued a stipulation that for Chinese-foreign joint ventures in automobiles, the Chinese shares must not be less than 50%.
Until April 2018, National Development and Reform Commission publishes news Said that the automotive industry will be divided into types to implement the transition period, specificIt is planned to cancel the restrictions on foreign-funded shares of special-purpose vehicles and new energy vehicles in 2018. In 2020, the restrictions on foreign-funded shares of commercial vehicles will be abolished; in 2022, the restrictions on foreign-invested shares of passenger vehicles will be abolished, and the restrictions on no more than two joint ventures will be cancelled. This also means that through the five-year transition period, the automotive industry will all cancel the restrictions on stock ratios.
After the signal appeared, the car company began to act. The first is BMW Brilliance. In October 2018, BMW spent 3.6 billion euros to buy 25% of BMW Brilliance. The total shareholding ratio increased from 50% to 75%, becoming the major shareholder of BMW Brilliance.
In addition to BMW, international car giants including Volkswagen and Daimler have revealed signs of a desire to adjust the share ratio of the joint venture company. However, due to the interests of all parties involved, in the game of adjusting the stock ratio, there is no other car companies to adjust the stock ratio except BMW.
——————–
I am Niu Xiaotong, the author of the Future Auto Daily, focusing on the dynamics of the car and travel, and welcome the news and exchanges. My WeChat is NEXT0117, please add a note name, position, company.
