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According to a number of media reports, brilliance may reject the acquisition of BMW because the 1.633 billion yuan purchase price offered by BMW is too low. According to brilliance insiders, "the acquisition of the Chinese factory by BMW has been stopped, and the relevant BMW staff in the Chinese workshop have been withdrawn." According to the above-mentioned person, the relevant leaders of FAW are meeting with the executives of brilliance Group recently, and the group thinks that the price for BMW's 1.633 billion yuan purchase of the China Automobile plant is too cheap, so it does not agree.

In response to the above news, BMW Chinese officials said: "the project continues to receive support from all parties, and we are not in a position to comment on the matter as planned. Please understand." At the same time, a brilliance Renault Gold Cup insider said that the meeting between the senior management of brilliance and FAW leaders was true, and the rest said they did not know. So far, brilliance Group officials have not made any relevant response.

It is understood that the 1.633 billion yuan acquisition offered by BMW includes three items of land use rights, worth 240 million yuan, 19 buildings and 20 structures, valued at 700 million yuan, and machinery and equipment worth 293 million yuan. And brilliance Group's 100% stake in brilliance Automobile Manufacturing Co., Ltd., due to the balance between assets and liabilities, worth 4500 yuan, totaling 1.233 billion yuan. In addition to the asset offer of 1.233 billion yuan, BMW China's 1.633 billion yuan premium is also used to pay for BMW's acquisition of brilliance shares in China.

Related reports pointed out that although BMW's previous purchase bill was passed at the creditors' meeting, the internal disapproval rate is still very high. Brilliance Group insiders believe that although brilliance Group sells assets because of bankruptcy, it cannot be sold cheaply.

On August 31 this year, the second creditors' meeting was held in the case of substantive merger and reorganization of 12 enterprises, including brilliance Group. the main agenda of the meeting was to vote on the property management and price change plan, the proposal to set up a creditor committee and the "China" brand price change plan. According to Caijing, all three bills were passed at the meeting after a vote by creditors. However, BMW China's proposal to buy "Zhonghua" car has a low pass rate, and the agreed amount accounts for only 57% of the creditor's rights at the meeting, which is the lowest proportion of the bill, with a purchase price of 1.633 billion yuan.

After the news was reported, BMW responded to the acquisition of brilliance China brand, saying: this acquisition involves the tangible assets of brilliance China, not the "China" brand, which makes many netizens saddened: "I never thought. The future of the once-popular independent brand of 'Zhonghua' is now uncertain.

On October 20 this year, the website of the Anti-monopoly Bureau of the State Administration of Market Supervision released a document on the case of BMW (China) Investment Co., Ltd. acquiring a stake in brilliance Automobile Manufacturing Co., Ltd. According to the announcement: brilliance Automobile Group holding Co., Ltd. currently holds a 100% stake in brilliance Automobile Manufacturing Co., Ltd., thus controlling brilliance Manufacturing alone. BMW (China) Investment Co., Ltd. has signed an equity sale and purchase agreement with brilliance Group to acquire the entire stake in brilliance Manufacturing. After the proposed deal, BMW China will control brilliance separately.

As for the disclosure by insiders of brilliance Group at the beginning of the article that the leaders of brilliance Group were in contact with the leaders of FAW Group, in fact, as early as February this year, it was reported that FAW Group planned to buy brilliance for US $7.2 billion. However, FAW later responded that it was "false information." Brilliance China also issued a clarification announcement: "there are a number of media reports about the possible acquisition of shares in the company and the privatization of the company by China FAW Group." The Board would like to clarify that to the best of our knowledge, knowledge and belief after making all reasonable enquiries, the Company is not aware of the source of the information contained in the media reports. "

According to public information, brilliance Automobile Group was founded in 2002 and is mainly engaged in vehicle manufacturing. It owns independent brands such as "brilliance China", "Hua Song" and "Golden Cup" and joint venture brands such as "brilliance BMW" and "brilliance Renault". Due to long-term poor management, brilliance Group entered bankruptcy restructuring on November 20 last year, and its assets were sold to pay off debts. Among them, the "Zhonghua" brand is the third largest asset plate of brilliance Group, and there is a lot of uncertainty about whether brilliance can be reorganized successfully, but many creditors thought that once BMW successfully acquired brilliance, it would mean that the overall bankruptcy restructuring was impossible.

BMW China was founded in 2019, and its business is concentrated in China, mainly for holding and managing BMW Group's investment projects in China. For BMW, BMW's acquisition of brilliance China actually acquires brilliance assets, not brands. What BMW wants is mainly the means of production to expand production capacity. Once BMW acquires brilliance China, its scale is bound to expand. However, there are also many uncertainties about whether BMW can successfully acquire brilliance China.

On September 7 this year, Jinbei Automobile Co., Ltd., an affiliated company of brilliance Group, announced that it had received a notice on the extension of the time limit for the submission of the draft reorganization plan of brilliance Group issued by brilliance Automobile Group holding Co., Ltd. and Shenyang Automotive Industry Asset Management Co., Ltd., and the court ruled that the submission period of the draft substantive merger and reorganization plan of 12 enterprises, including brilliance Group, was extended to December 3, 2021. Perhaps there will be a clear answer to the acquisition of brilliance Manufacturing by then.

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