Rebirth of England.

Chapter 865 Become a target

What Daisy meant by speeding up her actions was naturally referring to their acquisition of various high-quality assets...

This process began after the last time the Federal Reserve introduced its quantitative easing policy, QE2.

After all, with the Federal Reserve and other countries successively implementing quantitative easing policies, the result is currency depreciation.

If you don't want your wealth to depreciate, you need to spend your money quickly and replace it with assets that maintain their value, such as real estate, precious metals, and high-quality companies and other industries.

Some of the more radical ones will even choose to use debt to make acquisitions - it's a simple logic, as the currency depreciates, the actual value of the money you borrowed from the bank will have shrunk by the time you return it, so even if you add the interest you need to pay, you're still making a profit.

Of course, the prerequisite is that you buy it with debt and it is a high-quality asset that can resist currency depreciation.

In terms of discernment in this regard, Barron, as a reborn person, naturally has a natural advantage.

The Federal Reserve carried out its second round of quantitative easing, or QE10, in October last year. What Daisy did not expect was that less than a year had passed - only 2 months at most - and the Federal Reserve was about to launch its third round of quantitative easing.

Obviously, this only shows that the economic recovery in the United States is still lower than expected. Under pressure, they need to carry out a third large-scale money printing.

But if you think about the fact that this year is the US presidential election year, it is understandable.

Currently, the President of the United States, Obama, needs to seek re-election. Naturally, before November, he needs to make the US economic performance even better and satisfy the American people.

It can be said that the reason why the Federal Reserve chose to implement quantitative easing policy at this time is somewhat intriguing, and it is intended to assist Obama's re-election.

Since the last round of quantitative easing by the Federal Reserve last year, the funds and investment companies controlled by Barron have successively acquired assets including Motorola Mobility, Enel, Alstom, Broadcom, and the ongoing acquisition of Commerzbank...

It can be said that the total funds involved in these asset acquisitions exceeded 1000 billion US dollars!

These acquisitions, in addition to the issuance of additional company stocks, include part of the profits from capital market investments, and another part comes from loans and financing from banks and other financial sectors.

However, even so, the debt of the industries he owns is still not high, and he can still continue to raise funds through loans and other means for subsequent acquisitions.

As long as the acquired assets can maintain their value for a considerable period of time thereafter - in other words, the prices of these assets continue to grow during the currency depreciation process, then Barron will make a profit.

Many capitals are using this method, but not all of them are successful.

The key point lies in the selection of the acquired assets. After a sky-high-priced acquisition, the company's poor management and eventual sale at a low price are not uncommon in the history of global commercial mergers and acquisitions, and even account for the majority of cases.

It is also Barron's vision that ensures that his actions will not lead to a black swan event, which will lead to a break in the capital chain and a total collapse.

However, when they were acquiring assets, some of Barron's industries also became targets of acquisition by others.

For example, recently LOMX Group received an acquisition intention from Euronext, the parent company of the New York Stock Exchange, for the London Stock Exchange. Euronext Group is preparing to acquire the London Stock Exchange for US$100 billion.

At the end of 2004, Baron completed the acquisition of the London Stock Exchange through Global Industrial Investment Fund (GII). After that, he acquired the Swedish OMX Group and formed the London-OMX Exchange Group (LOMX Group) through a merger.

The LOMX Group later reached an agreement with the Nasdaq Group to hold shares in each other, and after listing and raising funds on the Nasdaq stock market, it completed the acquisition of the Italian Stock Exchange.

It can be said that up to now, LOMX Group has become the largest exchange group in Europe, but it has not stopped.

In 2010, LOMX Group acquired TMX Group, the parent company of the Toronto Stock Exchange, for US$30 billion, integrating Canada's largest exchange into its own system.

In 2011, LOMX Group acquired 15% of the shares of the clearing company London Clearing House at a price of 60 euros per share, expanding its share in the clearing market to the world's leading position.

In the same year, LOMX Group completed the acquisition of the London Metal Exchange (LME) for US$20 billion, making it a wholly-owned subsidiary of LOMX Group, thereby greatly enhancing LOMX Group's control over the non-ferrous metal trading sector.

The London Metal Exchange (LME) is the world's largest non-ferrous metal exchange. It was established in 1876 and trades copper, aluminum, lead, zinc, nickel and aluminum alloys. The prices and inventories of the exchange have an important impact on the production and sales of non-ferrous metals worldwide.

It is worth mentioning that in Barron’s previous life, the London Metal Exchange was acquired by the Hong Kong Stock Exchange in 2012 for nearly 14 billion pounds, but now it has been taken over by the LOMX Group.

To date, the market value of LOMX Exchange Group has exceeded US$250 billion, making it one of the largest exchange groups in the world.

However, Euronext Group hopes to purchase the core industry of LOMX Exchange Group, the London Stock Exchange. You know, when GII Fund completed the acquisition of the London Stock Exchange, it only cost less than 15 billion pounds...

Of course, the London Stock Exchange is now very different from what it was before. On the one hand, it belongs to the LOMX Group. Through continuous acquisitions and equity investments, the London Stock Exchange, as its core industry and located in London, a major global financial center, has great integration capabilities.

In addition, after obtaining the right to formulate LIBOR, the London Stock Exchange's position in the financial field has become increasingly important.

After LOMX Group rejected Euronext's acquisition offer without hesitation, the other party immediately raised the price again and quoted a price of 120 billion US dollars...

“We do not have any intention of selling the LSE and we do not believe that the Euronext offer is in line with the current value of the LSE…”

This is what Wayne Macaulay, CEO of LOMX Group, said in an interview.

Wayne Macaulay took over as CEO of LOMX Group just last year and led the acquisition of London Clearing House and London Metal Exchange.

In addition, he was once the chief adviser to the previous Chancellor of the Exchequer, Darling...

In fact, what Wayne Macaulay did not say in his speech was that they even doubted whether Euronext could pay the $120 billion they had proposed.

After all, in Barron's previous life, at the end of this year, when Intercontinental Exchange Group acquired Euronext Group, the offer was only $82 billion...

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