L'Oreal acquired the US namely the Ministry of Commerce approved, the next stop dying?January 9, the Ministry of Commerce according to the relevant provisions of China's anti-monopoly law, approved by the L'Oreal acquisition of the United States that, so far, the Chinese cosmetic market, the largest single acquisition is nearing completion. For the United States that after the planned acquisition, L'interior official said: 'The US would soon L'Oreal China as a separate business unit to operate Moreover, the current management team will remain in the United States and that is the board of directors after the acquisition by the current management and L'Oreal. representatives. 'A few months ago, L'Oreal will be declared at a price of HK $ 6.30 per share to acquire all the shares of Magic Holdings International Ltd., the total price will reach 6.538 billion Hong Kong dollars, after the completion of the transaction, United Holdings will be delisted from the HKEx . i horse had also author of the acquisition, which looks Lang affectionate concubine interested in a takeover, there really so perfect? The following is the analysis of the article before i dark horse. According to public information, the Offeror L'Oreal Group, a European has a 106-year history of cosmetics, which owns Lancome, Giorgio Armani, Biotherm, L'Oreal Paris, Garnier, Maybelline, Vichy, La Roche-Posay, US Qisi and many other famous cosmetics brand, covering skin care, makeup, cosmetics fields, sales exceeded its 2012 sales of 22.46 billion euros in sales, operating profit amounted to 3.71 billion euros, compared with last year increased by 5.5% and 12.3%. 2012 L'Oreal Group's operating profit grew by 12.3%, accounting for 16.5% of sales; net cash flow increased by 26.4% to 2.58 billion euros, both record high. To achieve 10.7 billion in sales in the Chinese market, the first time the Chinese market of billions of sales mark, heady, and the acquired compared with the United States that mask L'Oreal obviously just Cinderella, whether it is not a profit sales volume, but affect the United States that mask the Chinese title of king. Magic Holdings's most important product is the United States that mask Chinese mask a single product in 2012 achieved sales of 12.2349 million yuan, it can be said to mask the field worthy of the king, which increased by 29% over the previous year, while its mask areas which still continuing at a rate of 20-30 per cent per cent growth. Magic Holdings subsequent release issued after the acquisition announcement, said: joined the L'Oreal Group will contribute to 'Magic' with its global R \u0026 D strengths and international strategic platform to 'the United States that' the further development and promotion of the brand to provide effective long-term support. L'Oreal also believe the United States that China's cosmetics which areas are the fastest growing area, is very optimistic about the future in this area. It also shows that a 'marriage' is a Lang affectionate concubine interested in acquisitions, both sides what they want, but the fact that there will be like bulletin said so perfect? L'Oreal acquired for the purpose of large areas of FMCG resolve acquisitions especially foreign brand acquisition of local brands, usually due to the acquisition of the following purposes: 1 income products. Any of the world's top manufacturers can not cover the entire product line. L'Oreal currently has covered perfume, hair, makeup, body care, cosmetics and pharmaceuticals, luxury goods and other product lines, but in relatively low-end products in the field of basic mask blank, it urgently needed to enter the blank itself, but with high growth The area to be the best means of direct acquisition, rather than spend a lot of effort to re-brand, it is better to spend money directly into, which is recognized as one of L'Oreal acquired important objective of the United States that. 2 admission brand. For the good development of China's domestic brands, foreign giants like the cut leeks in recent years have generally harvest them. Robust, small nurse, MAXAM, Tesco, etc. These once proud national brands have fall, fall into the hands of foreign giants, and giants draw on their brand influence curve reached the Chinese market. But L'Oreal itself has a reputation in the high-end market, the Chinese market more than a combination of the brand, the acquisition of the United States that the brand value of little significance, therefore, non-primary purpose. 3 acquisition team. As a native of the United States that China's market brand, with a strong localization of channel development team, but also has the mask areas are more leading technology research and development team. However, foreign brands such as Estee Lauder and other powerful precisely in technology research and development team, and L'Oreal's technical ability is clearly not weaker domestic technology product team, so the acquisition of the United States that the technical team and the lack of power, but the United States that channels in the four-tier cities development team is very strong, determined to channel the recent sinking of the L'Oreal brand to some extent, these attractive. 4 acquisition channels. For the Chinese local brands, in the channel does not have too strong negotiation position, the United States and that is mainly involved in such channels is Watson cosmetics retail stores. The three legs of the L'Oreal cosmetics among retail stores, supermarkets, all counters in a strong position to negotiate, therefore, for the public in terms of the significance of the acquisition of the United States that the channel is not very large, but for three or four lines have a certain sinking channels significance. 5 acquisitions user. United States that mask monolithic maintained at between 7.7-25 yuan, is in a low-end user base price, low degree of overlap between it and the user group L'Oreal, the user needs and less consistent, brand philosophy and the demands differences are Great, so the acquisition of the user's needs are not too obvious. 6 in the capital market, there is a situation that direct sales and profits. From the United States that last year's sales point of view, its full-year sales of around 1.2 billion, according to 76 percent margin, net profit 14.4% to calculate. The high growth 20-30 percent each year, the United States that will grow 29 percent last year, read the next year in accordance with the estimated sales can reach about 1.5 billion, while L'Oreal in China market sales of about 10.7 billion sales, an acquisition which will directly promote business growth of around 15 percent of L'Oreal, which makes it definitely whether a sale or capital levels at the operational level are much more imagination, and not too low profits and sales will continue to promote the sustained growth of L'Oreal. This is clearly an important objective is the acquisition of L'Oreal. 7 foreign brands in recent years have harvested the domestic segments of top brands, as well as strategic considerations. Foreign brands often can not compete in some segments of the domestic brands, Air Jordan 1 but can take advantage of the lack of ability of domestic brands as Air Jordan 8 Retro bait to attract international investment in his arms domestic brands, after re-use 'frozen' and other means to eliminate competition in one fell swoop . While this provision, these foreign brands are not recognized, but the spirit was acquired in recent years, domestic brands after the initial Again no Nike Air Yeezy one can have to say that after the acquisition of foreign domestic brands has not only the imagination as to give technical support brand , but let domestic brands more harm than good. This year should be seen desperately Wahaha from Danone hands ransom. United States that sold themselves cause guess from each of the above purpose of acquisition can know the purpose of L'Oreal acquired the United States that clearly is to optimize product distribution and increase revenue, thereby expanding their own advantages in the Chinese cosmetics market, then for the United States that is concerned, and why should prostitute? In fact, the reasons simply following a few: 1, although in this segments is growing rapidly, but the small overall size of the market, so limited a single product growth. In the United States that the existing sales, even sustained growth, the United States that is still difficult to achieve the ideal of sales, compared to L'Oreal global sales of billions of euros, which is still in the very small size of the stage, therefore, want to continue bigger, unless the expansion category, but a clear need for funds to support more production lines and easy, encountered growing difficulties of the United States that would be a good choice bondage 2 The second reason is probably talking about the voices of many domestic brands want quarter of the country to achieve the brand further. As the domestic high-end cosmetics brands, almost all foreign brands, the domestic cosmetics market is concentrated in the low-end, brand image and profit chain at the low end, in order to achieve international expansion and brand extension upgrade is very difficult, therefore, to marry Homer, dependent on foreign channels of globalization, capital, talent, technology, help bail out the domestic brands core view, then hope to sell Coca-Cola Huiyuan is because Chinese and foreign brands of these advantages. 3 additional cash founders impulse can not be ignored. The United States that allows entrepreneurs to sell L'Oreal to get a relatively good return, is also a factor of entrepreneurs bondage. Not optimistic about the acquisition of the six factors that marriage, from any point of view, seems to be a happy marriage, a need the right 'concubine' objects, married in a hope to improve the grade, which entered high society, how it all that is a good deal. But the acquisition of foreign brands from local brands cases of failure of view, this 'marriage' can hardly be better, then married in the United States that will face a real challenge, but it is preceded by two small nurses and Yue-Sai, L'Oreal married , but now only in 'limbo' sit 'Chinese unfortunate' cases. In a burst of applause among the black Marco wants to pour cold water poured a following reasons: not optimistic about the reason: past experience guide for the future, L'Oreal acquired local brands fail to integrate existing precedent. Nurse year by L'Oreal acquired before the market came three skin care products, second only to the international big brand Olay and large local national treasure, a high awareness in the minds of consumers, but to this day, little nurse in the market almost disappeared, while another brand Yue-Sai in the consumer almost hard to find, though this does not prove foreign brands deliberately 'frozen' local brand, but at least proved that although L'Oreal duck in the Chinese market, but it is not a good integration of acquisitions of local brand, Danone acquired Robust, after the acquisition of Johnson MAXAM, these famous domestic brands then almost disappeared, it also makes people wonder the United States that the king of the local mask will step footsteps they do not optimistic about the factors II?: team how to bridge cultural conflict? lesson cultural differences and company prove difficult to bridge gene. In the foreign giants to enter the Chinese market failures among the factors factor is a very important difference in foreign investment over the team and the Chinese local team culture, the local team is more flexible and aggressive, while foreign teams are often conservative. And just came tesco Tesco will sell China Resources is a good case, the team of two cultures clash, often result in the loss of the original management team, founders of the United States that there is much likely to remain among the original system often draw a huge question mark. Or in small nurse, for example, was acquired after the small nurses, Nurse dealers a huge loss, the key is the original management team, a good relationship with the dealer after L'Oreal easy to master and then there is a huge difference on profit-sharing, and of all things foreign companies institutionalized, it requires several levels, so that rapid response with the previous dramatic contrast, the loss of most of the final small nurse dealers had ended in gloom. This cultural clash namely in the United States will still exist after the acquisition, L'Oreal, how can bridge this cultural difference is not optimistic about the three factors:? The United States that it really has a very important strategic position, is more likely to be marginalized. That is, after the United States did not 'prostitute' Before everything themselves, Nike Basketball but 'bondage', but many brands of sub-brands in one, how much resources can be tilted, dubious, in particular about the resource allocation of the times, the number of marketing Resources will be invested over the United States that, and there will be the United States that much effort into product development? A brand launched in six months or a year, if not new, basic will lose influence in the minds of consumers, and many of the L'Oreal brand line That is clearly not the focus of the United States, so the United States that the marketing investment under questionable circumstances, it has become suspended in the United States that the head of the shadows. Four are not optimistic Factors: foreign brands may encounter blood type 'borrowing' bloody lessons have been proven. Foreign foreign brands tend to use the existing domestic brands influence grow their existing brand, then the domestic low-end brands sideline. The latest case is a bloody takeover Coty Ding, after being acquired in Ding, Ding channels Coty use overall development of its own brand, the results of its brand Adidas's sales nearly doubled, while sales dingjiayi volume fell by 50%. Although this was denied L'Oreal and other companies, but these Nike Pepper Shoes cases had to wonder whether the domestic brands will once again encounter such difficulties are not optimistic about the five factors:? To what extent have synergies user base and user temperament do not match. L'Oreal emphasis on high-end products, after the United States that consider themselves married in can enhance their brand value, but the United States that has been in the minds of consumers to establish a low-end domestic = mind, and the minds of consumers can not reverse the domestic low-end image, so, For the United States that the brand is not realistic in terms of upgrading the dream. L'Oreal acquired by the United States that will be able to realize their own products into the low-end market value of it? In the earlier analysis into the low-end market, L'Oreal is not the lack of channels, not the lack of products, acquisitions in the financial sense and more sense to establish a moat Great, so far as synergy, combined with a lack of common user groups, seemingly only dubious. Six factors are not optimistic about the: acquisition projects aim to obtain greater cash cow, so whether or not the United States that continue to invest to build the brand into doubt. L'Oreal in China in recent years from the actual market Air Jordan 19 growth slowed, L'Oreal in urgent need of a cash cow to help growth, so, from the acquisition purpose and did not want to pay big bucks to force the United States that continue to invest to build. And not really want to get the United States that in this environment can continue to grow it? After all, China's consumer goods market are still Nike Shoes relying on marketing-driven, and the United States that need this type of FMCG high marketing costs, L'Oreal can continue as a godson put it? In each of the last fairy tale, the prince is a happy life together, but each reality behind dark fairy tale, Cinderella and the prince are due to cultural differences and suffered marital difficulties. United States that L'Oreal will encounter this dilemma and tragedy it? Wait and see.