In late May, Red Star Macalline publicly released information on its official website. The information revealed that the equity acquisition between the company and JSWB has been adjusted to brand strategic cooperation. The two parties signed a long-term brand license cooperation, and JSWB will exclusively own its commercial brand. Long-term authorization to Red Star Macalline to develop new stores nationwide. As soon as this information was made public, people in the national furniture industry expressed great concern. Many insiders speculate that the termination of the acquisition is due to lack of funds, while the relevant parties of Red Star Macalline said that the acquisition was stopped and has nothing to do with funds.
In January of this year, Red Star Macalline announced the signing of the "Equity Acquisition Framework Agreement" with JSWB, claiming that it will acquire the third-ranked JSWB in the industry. This is considered to be the largest M&A case in the home furnishing industry. The internal shuffling will be repeated.
At that time, Red Star Macalline emphasized the importance of focusing on the “home village†of JSWB, and will promote the national layout of the “home village†business of JSWB. After the completion of the acquisition, JSWB and Red Star Macalline will form a “double brandâ€. Operation".
It is understood that Red Star Macalline’s plan to acquire JSWB is not the first time. In 2009, the two sides reported "in-depth cooperation", but according to market rumors, the two parties ultimately failed to reach an agreement due to price reasons. This time, Red Star Macalline explained that this cooperation model adjustment is that after in-depth study of the business environment and their respective business status and advantages, it is considered that “strategic cooperation based on brand as a link†is more consistent with the “comprehensive†business. Benefits and their long-term strategic goals.
A network broke the news that Red Star Macalline and JSWB adjusted their equity acquisitions to brand strategic cooperation because of lack of funds. In this regard, Red Star Macalline denied this statement to Netease Finance. It is said that Red Star Macalline has a good financial position and abundant cash flow.
On April 25, Red Star Macalline issued a prospectus (filing draft) showing that Red Star Macalline intends to list on the Shanghai Stock Exchange, and plans to raise funds of about 4.45 billion yuan. Red Star Macalline, which has been planning to list for many years, has changed the mode of cooperation at the critical moment of the listing, which will inevitably lead to market speculation.
In January, Red Star Macalline said that the acquisition of JSWB was not directly related to the listing, because it was not enough to influence Red Star in terms of asset size, profit scale or number of stores. In its prospectus, the funds raised will be used for the construction of 11 projects including home life plaza projects and e-commerce platforms in Wuhan, Chongqing, Tianjin, Shenyang and other places.
Some analysts pointed out that under the impact of e-commerce, Red Star Macalline will become extra cautious in every step of commercial layout, stop the acquisition of JSWB, abandon the M&A expansion road, or intend to first put the mall, e-commerce and other online and offline The platform is built up to find internal breakouts in external changes.
Some experts believe that M&A is a very cautious action and behavior. It should not be operated at will. This M&A, once known as the industry's first M&A case, is not particularly meaningful. The M&A is usually a special benefit. A promising industry or enterprise, or an industry or enterprise that is complementary to its own products.
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