Our Glamorous Time

Chapter 64: Hello, Brother

Why would a multi-national corporation acquire a Chinese company? Because the Chinese market was too tempting. Lots of foreign corporations couldn't adapt to the environment in China, or compete with local companies. At times, acquisition became the most effective means to expansion.

For one thing, it could obtain the mature sales channel, market network, talent and client resources of the local company; for another, acquiring rivals helped annihilate them once and for all. Brands such as "Little Nurse", "Robust" and "Lekai Film" were prevalent several years ago, but now, they were nowhere to be found. What's more, buyout of the top firms in the industry led directly to monopoly.

Were there well-known instances? Of course. Hygiene products, cement, snacks, soybean and mechanical manufacturing were all gradually being dominated by foreign companies. If they couldn't compete with local companies, then they would buyout the competition, which was a trick used repeatedly by foreign corporations.

And now, they stepped into bag industry.

From Lin Mochen's perspective, it was just the result of globalization. He would never have the struggle that he, as a Chinese citizen, should be patriotic and protect national brands. He only knew that Chinese companies had to go through these ordeals if they wanted to participate at international levels. It would be excellent of someone if they could protect their own company, but they would be the only one to blame if they were eventually conquered.

Cruelty and ambition manifested by western corporations resembled what they demonstrated when they invaded China centuries ago. Even if DG didn't acquire China's bag corporations today, there would be other multi-national corporations in the future doing the same thing.

Aida would face the same trial sooner or later, no matter what. Lin Mochen wouldn't change her fate, nor could he change that of Aida. However, he was trusted by his clients, and he couldn't reveal any information to her. It was ethical of him to observe confidentiality, and the apathetic way he talked to her was not problematic at all.

It was ten o'clock in the morning.

SMQ, MK Investment Management Corporation and DG Corporation were sitting at the round table. After half a month of negotiation, there was finally a consensus between the three, with DG Corporation buying fifty-one percent of SMQ's shares and becoming the controlling shareholder. This would inject a large sum of funds into SMQ and make SMQ the first-tier company in Asia-Pacific Area through mutual efforts.

To Chen Zheng, although he acquiesced in this buyout, it might also be a new start for him. According to the contract, DG Corporation would send off a few of the personnel to the executive and management board, but he was still the general manager and in control of the company. Not only could he receive a large sum, but also could he introduce advanced foreign technologies and patents to his firm. Even though there were many harsh conditions in the agreement, this cooperation was indeed a win-win like what the media said.

But for Lin Mochen, only one thing would happen to SMQ. DG acquired SMQ not to help it, but to enter Chinese market under its shield. After a short while, he would use methods like stock splits to gain more control of SMQ, per his client's desires. In the end, Chen Zheng's managing power would be removed and SMQ would exit the market gradually.

The process was so smooth that Lin Mochen found it dull. Lin Mochen's team resided in the most luxurious hotel in the center of the city. But this night, instead of going back to his hotel, he went to another apartment in the downtown area. That was an apartment he purchased a few years ago when he went back to Lin City. He purchased it to have a private place to stay in, and to make sure Lin Qian would have a house no matter what happened.