On 9th August 2010, CCCC completed the acquisition of a 100% interest (the Acquisition ) in Friede Goldman United, Ltd. ( F&G ), one of the world s leading providers of design services for offshore drilling rigs. It is CCCC s first transnational M&A, which can be considered as an important step in global strategy of establishing a world-class enterprise.
F&G, headquartered in Houston, US and registered in Cayman Islands, enjoys a great reputation as an offshore construction designer. In support of its key valuable intellectual property rights, including many design patent, technology innovation, and package solution, F&G has accumulated abundant professional knowledge and enormous technology resources database. Over 10% of the world fleet of jack-up rigs and over 20% of the semi-submersibles are designed by F&G. Of the rigs currently ordered for construction in the world, 25% of the semi-submersibles and over 35% of the jack-ups are of F&G s design. Most of the rigs built to F&G s design also use equipment packages supplied by F&G. F&G has relatively stable clients all over the world, mainly of which are industry leader in the global offshore construction market.
As one of CCCC s core businesses, Heavy Machinery Manufacturing business is a crucial area of products mix restructuring. In addition to maintaining and consolidating traditional container crane manufacturing, ZPMC has committed to build marine heavy machinery and large steel structure in the past few years. However, there is a bottleneck in new businesses R&D. It is known that F&G is a world famous designer for offshore drilling rigs, especially its semi-submersibles design, accounted for the Top 1 place globally. Therefore, this acquisition could help ZPMC enhance its R&D in virtue of F&G s high-tech platform. On the other hand, synergies would be more obvious since ZPMC s strong manufacturing capability has combined with F&G s advanced design ability and share complementary advantages. Meanwhile, the integration of design and manufacturing of offshore exploration equipment will enhance the competitiveness of the Company and enable it to provide its customers with high value-added services in a prompt and cost effective way.
The aggregate amount of consideration for F&G is US125,000,000. The acquisition project has been carried on since January this year on a strict manner in line with international practice. In spite that of complex situation of transnational M&A, and there is seldom any past lessons to follow, CCCC is able to overcome any number of difficulties and finally commit to the official Stock Purchase Agreement on 22nd June and finally completed the transaction on 9th August. The Acquisition has laid a solid foundation for new businesses exploiting in overseas market, and is of long-term strategic importance to CCCC s industry chain improvement.
Source from: Office of Board of Directors, CCCC
Related News
Photos
More>>
trade
market
finance
- Beijing Olympics Gold Bar Successfully Issued and BOC Sales Catching Fire
- BOC Beijing Branch Provides On-site Consultations at World Broadcaster Briefing
- Bank of China Held Grand Event to Embrace the National Day for Assisting the
- BOC Olympic Knight Zhang Wannian Arrives in Hefei
- BOC Olympic Knight Mr. Zhang Wannian arrives in Changsha