| Home / English Column / Business (new) / More News | Tools: Save | Print | E-mail | Most Read |
| Gov't Urged to Block Supor Sale |
| Adjust font size: |
China's cookware manufacturers and industry leaders yesterday urged the government to block French firm SEB's takeover of Zhejiang Supor Cookware Co Ltd, warning that it could create a potential monopoly. SEB and Supor, China's largest cookware firm, agreed on August 17 that the French company would take a majority stake in the firm for 2.37 billion yuan (US$296 million). Chen Meirong, deputy general manager of ASD, China's third-largest cookware manufacturer, told China Daily yesterday the company would join forces with other firms, including Double Happiness Co, to ask the government to review and block the acquisition. "We are planning to ask the Ministry of Commerce to scrutinize the transaction," said Chen. "The acquisition may create a monopoly in the market and bankrupt most of the country's cookware manufacturers." "China's cookware industry is now taking off after 10 years' rapid development. Supor and ASD have the capability to compete in the international market. I am worried that SEB's takeover will mean the end of this," Chen said. According to ASD, SEB's purchase of Supor would result in the combined firm controlling almost half of the pressure cooker market. The transaction, involving the placement of new shares and the purchase of shares from Supor's major shareholder, will take months to be completed and requires government approval. As part of the deal, SEB will transfer technologies, management expertise and more original equipment manufacturing and original design manufacturing projects to Supor. But Chen said he believed that no one can match Chinese cookware manufacturers' design and cost-cutting capabilities. "Supor does not need technologies from SEB because it has developed strong research and development capabilities," Chen said. Chen said he doubted the motives for SEB's purchase and claimed that it intends to make its increasingly stronger Chinese counterparts bankrupt. "They buy you and let you die," Chen said. Shi Shenglan, secretary-general of the China Cookware Association, said that SEB's purchase of Supor was not simply a business matter. "Supor is regarded as the cookware industry's equivalent of Lenovo or Haier. It has become a household name and represents China in the global market. But now it's gone. "Foreign companies are worried their Chinese counterparts will become their global competitors. For them, the best way to avoid that challenge is to buy them and let their brands disappear," said Shi. She said the acquisition may benefit Supor shareholders but the transaction will threaten China's cookware industry. The takeover came after the August 8 release of China's regulations on purchases by foreign investors and the suspension of two major purchases by foreign investors. According to the regulations, any foreign takeover of domestic companies should be reviewed by the Ministry of Commerce. (China Daily August 24, 2006) |
| Tools: Save | Print | E-mail | Most Read |
 |
| Related Stories |
|
| ? |
