Rebirth Tokyo 1986

Chapter 221 Construction Channel
In 1989, Japan was at the height of its global expansion.

A large amount of Japanese yen was converted into US dollars to support the development of domestic enterprises overseas.

Sony's acquisition of Columbia Pictures and Mitsubishi's acquisition of Rockefeller Center are classic examples of this period.

Matsumoto Manufacturing needs to exchange a lot of US dollars, a full 35 billion US dollars.

But in the eyes of big banks such as Industrial Bank, Mitsubishi, and Dai-ichi Kangyo, it is nothing.

Kobayashi Hiroaki completed the relevant procedures very easily.

"Um, President, the money has been transferred to the Xinghai Investment account."

"Yes, Not Bad."

Masato Takeshita looked at the middle-aged man who was struggling in front of him, smiled and patted his shoulder.

"Don't worry, wait for my good news."

"Yes, President."

Having said that, he was still very nervous.

This is nearly half of Matsumoto Manufacturing’s cash assets.

If you accidentally suffer losses, although it will not cause serious damage, it will definitely affect the orderly expansion of the company.

The young man roughly guessed what Kobayashi Hiroaki was thinking.

But this time, he didn't say anything to comfort her.

You have to rely on yourself to get out of this kind of situation. No matter how much others persuade you, it won't have much effect.

After leaving Matsumoto Manufacturing and coming to Xinghai Investment, Masato Takeshita called the company's president to his office.

"Kamoto-san, the funds have been transferred to the Aquarius Fund. Let's start the action tonight."

In order to facilitate capital operations, Masato Takeshita specially established a new private equity fund for Matsumoto.

On the one hand, it is convenient for management, and on the other hand, we do not want funds to be dispersed.

What Matsumoto Manufacturing needs is influence, not invisibility.

"Hi!"

Jia Benlong bowed respectfully, and then asked carefully: "Um, President, what is our goal?"

The young man picked up a printed document from the table and handed it to him, saying, "Here, the goals are all written on it."

"The goal of Aquarius Investment Fund is to help Matsumoto Manufacturing expand its offline channels, so it will select companies in the emerging retail sector that have just emerged and are developing very well."

"Walmart, Costco, and Price in the United States, and Carrefour and Schwartz in Europe are all targets that I am optimistic about."

"If you find similar retail businesses, you can also make investments based on them."

Since the 20s, supermarket companies have risen rapidly and are gradually replacing shopping mall companies in the retail industry.

But this process is slow.

Today in 1989, shopping mall companies still dominate the retail market.

Therefore, Walmart, which would later become the world's largest retail giant, had a market value of just over 100 billion US dollars, less than one twentieth of what it would be ten years later.

As for the future second largest supermarket in the United States, Costco, the largest store-bought supermarket, has just completed its IPO and has a market value of less than $10 billion.

If Matsumoto Manufacturing wants, it can even acquire it in full.

Of course, Masato Takeshita would not choose to do so.

Because at that time, Costco was not complete. Price, which was established before Costco, had not yet merged with it.

In addition, Matsumoto Manufacturing did not know how to operate a storage supermarket.

If a full acquisition is carried out, there is a high probability that the company will not be able to bear the huge losses in a few years and will exit the retail market.

It would be better for several companies to own a certain percentage of shares and then become a member of the board of directors.

This will not affect their development, but will also allow them to reap the dividends of development and easily sell Matsumoto-made products to the world.

"understand!"

Jia Benlong was carefully reading the company profile on the document. Five minutes later, he suddenly looked up and asked.

“Five companies, how many shares do we want to acquire in each company?”

Masato Takeshita had already thought about this, and responded slowly and calmly.

"Walmart is too big, and our goal is 10% to 15%."

“The same is true for Carrefour and Schwarz in Europe.”

"As for Costco and Price, they are both relatively small at the moment, so it would be best to take about 30% of the equity."

The current market value of Costco and Priceline combined is not even a fraction of that of Walmart.

It’s so cheap, so of course I want to buy more.

Of course, don't buy too much.

If too many shares are held, variables may easily arise, which will affect the development of both companies.

30% is a share that both parties can accept.

"understand!"

Xinghai Investment did not intend to conceal the information, so the five listed companies soon got wind of it.

Dressed frugally, he didn't look at all like Robertson Walton, the eldest son of the world's richest man and the head of a large company.

Reporting to Sam Walton, the blue baseball bat-wearing, more frugal-dressed Walmart founder and chairman.

"Father, a Japanese financial institution called Xinghai Fund is purchasing a large number of our company's stocks."

Sam Walton frowned and muttered softly, "Xinghai Investment, I seem to have heard of this name?"

Robertson quickly responded: "The New York Times, NBC and other media reported on this financial institution some time ago, calling it the most successful hedge fund in the world."

"This is the relevant information of Xinghai Investment."

In order to attract more capital participation, domestic hedge funds in the United States also spent money to promote Xinghai Investment several times.

Therefore, Xinghai Investment also has a certain degree of popularity in the United States.

“Oh, it’s the hedge fund that escaped Black Friday perfectly?”

The stock market crash in 1987 left a deep impression on countless Americans.

When Sam Walton saw the introduction of Xinghai Investment, he immediately remembered everything about this financial institution.

At the same time, the old man felt much more relieved.

Because he had never heard of any hedge fund that would be interested in controlling the company.

Of course, even if Xinghai Investment wants to control Walmart, he is not afraid at all.

Because the Walmart family firmly controls more than half of the company's shares.

No one can shake their rule.

"It should be an asset investment. Don't worry about it for now. Wait until it reaches 10%."

"Yes, father."

The Wal-Mart family decided to remain in place, and the controllers of the other four companies also issued similar instructions.

The acquirer is a financial company, and its shareholding is less than 10%, so the impact is very small.

But soon, Costco was the first to get restless.

Because they found that Xinghai Investment's stock acquisition volume was very large, exceeding the 10% share of general investment.

"Jeff, the scale of Xinghai Investment is too large. We need to get intelligence on them."

Jim Senegal, the co-founder of Costco, came to the chairman's office with a lecherous attitude.

"Indeed, I was just about to tell you that."

Jeffrey Brautman was equally restless.

Xinghai Investment’s acquisition measures were very aggressive, and it acquired nearly 15% of the company’s shares in a short period of time.

What is this for?

Then he asked in an uneasy tone, "Maybe he is assisting other companies in acquisitions. Have you investigated Price?"

Price Companies, founded by retail legend, Saul Price.

As early as 1954, he founded the world's first commercial supermarket.

Why is Walmart called Walmart and Kmart called Kmart? Because the company founded by Price was called FedMart.

Latecomers like Walmart add a mark to their company names, which allows people to recognize their company type at a glance.

Of course, genius also has its shortcomings.

Price was a creative genius but a mediocre business executive.

After founding FedMark, he soon lost control of the company and was swept out by shareholders.

FedMark is also gradually declining.

Saul Price was very unwilling and decided to continue working in the retail industry.

He soon came up with a new idea and established the world's first warehouse supermarket.

Saul Price was successful again, and once again attracted imitators.

The most famous among them are Sam's Club of the Walmart family and Costco, which was founded in 1983.

As an imitator, Costco is not as strong as Price for the time being.

But Costco also has its own advantages, that is, it is located on the west coast of the United States, with geographical advantages and first-mover advantages.

If Price, whose headquarters is on the East Coast, successfully acquires Costco, it will have a foothold on the West Coast.

The company's market value will definitely increase significantly, no wonder Jeffrey Brautman thinks so.

"No, Mr. Saul is old and no longer has the ambition he once had."

Jim Senegal was a former executive at Price and knew his former boss’ character well.

He couldn't and wouldn't do that.

This is determined by character.

Sol Price is not that combative. He founded the warehouse-style supermarket Sol Price just to prove himself.

On the other hand, it also has something to do with Sol Price's age.

He is now in his seventies or eighties and just wants to pass on the company safely.

"That's it, that's good."

Jeff looked a little more relaxed.

If Price were to make the acquisition, it would be difficult for him to stop the shareholders' actions.

After all, two companies occupying the east and west coasts respectively are far less valuable than a company with a nationwide layout.

The two thought about it for a long time, but still couldn't figure out the purpose of Xinghai Investment.

Jim, who was a little tired, slapped his thigh and said irritably, "Guessing is useless. It's just a waste of time. It's better to call and ask."

"Well, call Xinghai Investment."

Jeff was also a little tired, and signaled his subordinates to check the public phone number of Xinghai Investment.

Xinghai Investment has been waiting for a call from Costco.

This was the goal that Masato Takeshita signaled to Takamasa Yoshimoto to frantically buy up Costco shares.

He didn't want a hostile takeover, but wanted to have some autonomy in the partnership.

In this way, Matsumoto Manufacturing can develop its own industry at a lower cost with the help of Costco's channels.

"President, Costco is calling."

"Well, give it to me."

Masato Takeshita was very happy in his heart, knowing that the other side was ready to surrender.

But he appeared calm and pretended not to care about anything.

"Good evening, I am Masato Takeshita, the chairman of Xinghai Investment."

"Our company is very optimistic about the supermarket retail track. So both you and Price have arranged for someone to buy the stock."

"Rest assured, we have no interest in taking control of an American supermarket."

"But we are indeed making the acquisition on behalf of another company, called Matsumoto Manufacturing, and we mainly want to use your company's channels to distribute our products."

"Yeah, yeah, okay, bye!"

After hanging up the phone, Masato Takeshita looked at the beautiful secretary Kayo Asai in front of him.

"Notify Kamoto Takamasa to continue the forced acquisition."

Although they had never met, the young man could hear the reluctance of the two founders of Costco.

He was prepared to push them further and force them to submit.

In this way, Matsumoto Manufacturing can gain more benefits.

While Masato Takeshita was enjoying himself, the US headquarters of Costco was shrouded in gloom.

Jeff slumped on the sofa, his brows furrowed.

"Jim, did you hear that?"

Jim also looked solemn and said unwillingly: "Well, I didn't expect that they would buy Price stocks on a large scale."

The two are now very worried that the shareholders will discuss the merger of the two companies under the instigation of Matsumoto.

Although the merged company will be more complete and powerful, the two will also lose control of the company.

After tasting the power, the two naturally were unwilling to stop there.

"Is there no other way?"

Jeff thought hard, trying to figure out what the possible crisis might be.

"let me see."

Jim also kept thinking and soon figured out the key to solving the problem.

"I understand."

"Understand what?"

Jeff was first startled by Jim's sudden loud voice, then looked at his partner anxiously.

He hoped to hear good news.

"Matsumoto Manufacturing is a manufacturing company and has no experience in operating the retail industry. Not to mention operating a small, newly developed public company in the United States."

Matsumoto Manufacturing is quite famous in the American retail industry.

Whether it is a trolley suitcase or cheap ready-made clothes, they are all must-have products in the supermarket.

As the founders of the retail business, Jim and Jeff are naturally familiar with Matsumoto Manufacturing.

“It’s impossible for Matsumoto Manufacturing to acquire a majority of the company’s shares and then manage it themselves.”

“It’s targeting the supermarket channel.”

"As long as we are willing to sign an exclusive contract with Matsumoto Manufacturing for trolley suitcases and ready-made clothes, we may be able to take over Price Company in return."

The more he spoke, the more he felt that what he thought was right, and his tone became more confident.

"Do we really have a chance to acquire Price?"

People's ambitions come step by step with development.

Costco is still very weak now, and Jeff has not yet developed any ambitions for Price.

But as his partners described the situation, he was also attracted by the bright prospects.

If Costco can achieve a reverse acquisition of Price, it will become the leader in the storage supermarket industry.

"The opportunity is huge. After all, we have better control over Costco than Price."

Jim Senegal knew his old leader very well and judged directly that Price would not choose to compromise.

On the one hand, Price has a higher market value and stronger resistance.

On the other hand, after being swept out by shareholders, Sol Price valued control of the company more than anything else.

Unless he retires, no one and no company can be above him.

"I really can't accept this. Is it so difficult for a small company to develop independently?"

Jeff still wanted to struggle, even though he knew that Matsumoto was the one who was in control.

(End of this chapter)