Legend of Xiangjiang Tycoon

Chapter 521: It might not sound that difficult

In Li Zhiwen's opinion, the 10% of L'Oreal's shares frozen by the French government are no different from those in the hands of Liliana Bettencourt, so there is such a question.

"Boss, the government freezes 10% of L'Oreal's shares to prevent L'Oreal from being controlled by multinational companies from other countries, but our Louis Vuitton Group is not a multinational company from other countries, we still belong to France." Nelson Tabia He said with a mysterious smile.

Li Zhiwen was stunned to hear Nelson Tabiya's answer.

But Li Zhiwen thought about it carefully. Nelson Tabia was very right. The 10% of L'Oreal's shares that were frozen in the hands of the French government were to prevent L'Oreal from being acquired by other multinational companies.

But if the acquisition is a local company in France, the French government will not take sides.

After all, Louis Vuitton would be uncomfortable if it favored L'Oreal, and L'Oreal would be unhappy if it favored Louis Vuitton.

So when Louis Vuitton and Liliana Bettencourt vie for control of L'Oreal, all the French government can do is stand by and watch.

Anyway, for the French government, no matter who controls L'Oreal, it has no influence on it.

But how to get 23% of L'Oreal's shares from Nestle Group is a very difficult thing.

Nestlé Group was established in 1867 and is a real century-old store.

The well-known Nescafé coffee is just a brand under its group.

Whether it is in the past or now, quite a lot of people do not know which country this company was born in, and they often mistake it for a beautiful country company. In fact, the Nestlé Group belongs to Switzerland.

In the mid-nineteenth century, Europe was still in a turbulent period of frequent wars.

In order to unify Germany, Prussia defeated Denmark and Austria in 1864 and 1866, but France was still behind the scenes, preventing German unification.

Under the instigation of the Prussian Prime Minister Bismarck, he created a dispute over the succession of the Spanish throne, and the French Emperor Napoleon III declared war on Prussia.

Prussia took this to unite the German nation and attack France, and the Franco-Prussian War broke out.

In the context of continuous wars, the health environment of European people has deteriorated, and the mortality rate of newborn babies remains high.

According to statistics, the mortality rate of infants under the age of one in Switzerland was as high as 20%.

Faced with this situation, a pharmacist started his own experiment in a dark room alone.

In the end, he mixed fructose, flour and milk powder in a certain proportion to make a mixed parenting dairy product.

It is said that at that time, a wife could not breastfeed her baby who was born a month premature due to her serious illness. She happened to know about this parenting dairy product and tried to breastfeed her baby.

As a result, the child likes it very much, and only eats this dairy product and grows up very healthy. The case has spread widely in parent circles, and many parents have started ordering the product. The inventor of this product is Henry Nestle, the founder of "Nestle".

When Mr. Henry Nestle learned that the product he prepared was accepted by the public, he was determined to start a business for mass production so that more families could buy it.

In 1867, a company named "Nestle" baby food production company named after Henry Nestle was born.

But at that time Nestlé mainly produced baby milk products.

However, Mr. Henry Nestle does not have too commercial ideas, so Nestle's production has always been very limited.

Mr. Henry Nestle is mainly engaged in scientific research most of the time. The purpose of his business is to let more babies in ordinary families benefit from this invention.

To this end, he also developed a low-price strategy to reach more people and go deep into the countryside to take care of the poor. By 1875, Mr. Henri Nestle, who was over 60 years old, sold the company and factory in Vevey, Switzerland to local businessmen, and this began to employ a large number of chemists and skilled workers to help expand production and sales.

Competing with Nestle in the same period, there is another company called Yingrui.

By 1878, Nestlé and Anglo-Swiss were selling each other's original products: condensed milk and baby rice noodles, creating fierce competition.

On balance, the two companies decided to merge in 1905 to form the Nestlé Anglo-Swiss Milk Company. The Anglo-Swiss company was founded in 1866, which became the birth year of Nestlé.

Although Switzerland declared its neutrality in World War I and World War II, the effects of the World Wars were everywhere. If you carefully study the many established European companies, you will deeply feel that they were all deeply affected by the two world wars.

The outbreak of the First World War in 1914 left many people in Europe without a place to live, which directly led to an increase in the demand for convenience foods.

For Nestlé, with the increasing demand for canned milk powder from the military and the public, a stable supply of raw materials has become a big issue.

To this end, Nestlé set its sights on the beautiful countries and Australia, which were far from the war, and began to acquire processing plants there.

After the end of the First World War, the demand for canned milk powder by the army and the public dropped, and Nestlé Anglo-Swiss ushered in a major crisis.

In 1921, due to falling prices and high inventories, Nestlé posted its first and only loss ever.

At this time, Louis Dabore, a banker who was in danger, joined and served as chairman of Nestlé Group.

He decided to separate business and scientific research, and all scientific research work was carried out in the laboratory in Vevey, Switzerland. This laid an important organizational foundation for Nestlé's R&D system and management model.

In 1929, Nestlé Anglo-Swiss acquired Switzerland's largest Peter Keller Kohler Chocolate Company, and since then chocolate has become an important part of Nestlé Anglo-Swiss's business. However, it was the arrival of instant coffee that really established Nestlé as a food empire.

In 1930, the Brazilian Coffee Research Institute consulted with Nestlé, asking them to try to produce a dry coffee that would become a beverage immediately after being stirred with heated water.

To this end, chemist Max Morgantel joined the Nestlé team and started the development of instant coffee.

After 8 years of repeated experiments, Nescafé was finally successfully launched. The research team sprayed the espresso extract through a hot air jet to form the coffee powder.

Because this powder is easily dissolved in boiling water, it quickly became a popular beverage, and a world-famous brand was born, which is also the birth process of Nescafé.

During World War II, for the same reason, the demand for Nestlé's products skyrocketed, especially the sales of instant coffee during World War II were even more amazing.

Nestle's instant coffee even became a ration for the U.S. military. By the end of World War II, Nestlé had grown into a global company with factories on five continents.

After the end of World War II, the global economy gradually recovered, and Nestlé entered a period of steady development.

In 1947, Nestlé acquired the Alimentana Company, which was popular on the battlefield of World War II, adding cooking products to its product line. The following year, Nestlé launched Nestlé Iced Tea.

Gu </span> However, in the next decade or so, Nestle became extremely low-key, without a single acquisition business, and it was unexpectedly quiet. However, it was the waiting and preparation of deep still waters during this period that laid the foundation for the next stage of large-scale expansion.

In the 1960s, Nestlé, which had been quiet for thirteen years, began to burst out.

Throughout the 1960s, Nestlé entered into new fields such as ice cream and frozen food through acquisitions, and expanded its traditional businesses such as dairy products and coffee, rapidly expanding its own territory.

In 1962, Nestlé acquired the Findus frozen food brand from the Swedish production company Marabou and expanded the brand to the international market. Findus has been selling frozen food in Europe since 1945 and is one of the earliest companies in the industry.

In 1969, the company also developed the drinking water business by acquiring the French drinking water brand Vittel.

In 1973, in order to consolidate its canned and frozen food position in the UK market, Nestlé took over the US frozen food company Stouffer, and in 1976 acquired the canned food production company Libby,;&amp;amp;amp;amp; amp;amp;amp;Libby.

In addition, Nestlé has also acquired some non-food-related businesses around the world, such as mining, hotel, eye care and other companies.

Nestlé became a shareholder in cosmetics company L'Oreal in 1974, which is when Nestlé began to increase its stake in L'Oreal, eventually reaching 23% today.

In 1977, it acquired Alcon Eye, a U.S. manufacturer of pharmaceuticals and ophthalmic products.

This is the first major development period in Nestlé's history. More than 90 years have passed since Nestlé was founded.

However, affected by the first oil crisis in the mid-to-late 1970s, Nestlé's overall performance growth began to slow down during this period.

In the 1980s, the CEO of Nestlé, Hamm Maucher, took office.

He clearly recognized that Nestlé must be more focused on the business and must stop unchecked diversification.

He decided to turn the company to more specialized food, and he planned to acquire a large-scale food company to form a scale effect, trying to become the world's largest food company.

After taking office, Maucher immediately began to sort out the internal business, quickly divested non-main business assets and loss-making areas, and identified mineral water, ice cream and pet food as the company's future main business.

Since then, Hammu Maurer has pursued this strategy.

Looking at the Nestlé Group, we can see that the survival method of these century-old companies at this time is to keep buying and buying.

This kind of buy-buy-buy model requires strong funds, of course, this is far from enough, after all, no one wants to sell their company.

Therefore, Nestlé's expansion is more of a means of stock plus cash.

This approach has brought two results to Nestlé. One is that Nestlé's strength has continued to grow, and the other is that Nestlé's shares have been continuously divided into the hands of many people.

It can be seen that Liliana Bettencourt, mentioned above, holds 4.06% of Nestlé's shares and becomes the largest individual shareholder of Nestlé.

Now the largest shareholder of Nestlé is Anglo-Swiss Investment, which holds 9.7% of Nestlé's shares.

If we go back to the past, Anglo-Swiss Investment can go back to Anglo-Swiss, which merged with Nestlé in the last century.

When Anglo-Swiss merged with Nestlé, Anglo-Swiss held a 40% stake in Nestlé.

At that time, William Phelps, the founder of Anglo-Swiss, reorganized Anglo-Swiss to invest in Anglo-Switzerland, exclusively holding shares in Nestlé.

With the development of more than half a century, Nestlé has continued to grow, while the shares in the hands of Anglo-Swiss have been continuously diluted, eventually becoming 9.7% today.

But even if Anglo-Swiss only holds 9.7% of the shares today, that's a 500-fold increase in value in comparison.

Now, Nestlé is shrinking its investment. The newly appointed CEO, Hammaucher, is starting a shrinking strategy, focusing on the three areas of mineral water, ice cream and pet food to stop useless diversification.

And L'Oreal's investment is obviously not in these three areas, and it is farther away from Nestlé's food strategy.

So during this time Hammaucher was also struggling with how to deal with L'Oreal.

Although at this moment Nestlé has released news that it wants to control L'Oreal, Hammaucher knows that it is impossible, after all, there are Liliana Bettencourt and the French government.

If L'Oreal can be won, Hammaucher will not hesitate to do it. Although L'Oreal is not in the core field of Nestlé, it can operate independently.

But Hammaucher knew that this kind of thing was impossible, and the L'Oreal shares he held would be tasteless, and it would be a pity to abandon it.

This made Hammaucher very painful and didn't know what to do.

And Nelson Tabbia also saw that Nestle was in a dilemma, so he proposed to Li Zhiwen to buy the L'Oreal shares in Nestle.

As for the controlling stake in Nestle, UU reading www.uukanshu.com Nelson Tabia is just joking.

Nestlé is a super multinational company with an annual revenue of US$7 billion, and its shares are too scattered, making it twice as difficult to acquire.

After listening to Nelson Tabiya's analysis, Li Zhiwen asked, "Nelson, what do you want me to do?"

"Boss, first of all, we need to have the same position of dialogue with Hammaucher, but we already have this. Louis Vuitton Group is the No. 1 luxury group in Europe, and its status with Nestle is not bad." Sentabbia said.

Li Zhiwen nodded and continued to listen to Nelson Tabiya's analysis.

"The second is that we need more than 10% of Nestlé's shares. Of course, this is not because we want to buy Nestlé, but because we want to have the power to deal with Hammaucher!" Nelson Tabia said.

10% is a very sensitive figure at this time, because now the largest shareholder of Nestlé, Yingrui Investment, only holds 9.7%.

"This is very easy, leave it to me, I will do it!" Li Zhiwen said.

"The third is that we need a 10% stake in L'Oreal, for the reasons I mentioned above!" said Nelson Tabia.

"Of course, Nelson, you will have everything you want!" Li Zhiwen said.

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