She decided to adopt a joint venture like an automobile company to introduce Nippon Steel’s cutting-edge technology in steel companies.
FAW-Volkswagen, Guangqi Honda, and Changan Ford have basically adopted this kind of joint venture idea. After two to thirty years of joint venture development, these companies have indeed achieved very impressive sales results.
Nippon Steel is also very interested in this cooperation, coupled with the Song family’s strength, land, and certain experience in the steel industry, it is also a very good potential partner for Nippon Steel.
So the two sides hit it off, and the rest is the discussion and formulation of cooperation details.
Warnia’s idea is that the Song family holds 51% and Nippon Steel holds 49%, but the idea of Nippon Steel is that they hold 51% and the Song family holds 49%.
Don’t look at such a slight difference in proportions, but it determines who has the final say in a company.
Shareholders who reach 51% are undoubtedly the largest shareholders, and they have absolute power to say anything about specific matters of the company.
Once the controlling rights are handed over to Nippon Steel, the Song family will lose all dominant positions in this cooperation.
At the negotiating table, both sides saw the issue back and forth, but no one wanted to take a step back.
Warnia said to Nippon Steel’s senior management: “Everyone, our cooperation this time refers to the usual cooperation model of the auto industry. In our country, local auto companies and overseas auto companies have established joint ventures with local companies to hold shares %, overseas companies hold 49% of the shares. After that, the company is established in our country and it should be controlled by us. I hope your company can understand this!”
The person responsible for negotiating with Warnia is Nippon Steel’s vice chairman, whose full name is Hashimoto Kinzaki, is a member of Nippon Steel’s core management.
Hashimoto Kinzaki is forty years old this year. In Japan, a society where qualifications are extremely important, he can climb to the core management so early. It can be said that he is a very right-handed person.
At this time, he looked at Warnia and smiled slightly: “Miss Song, I know the kind of cooperation model you mentioned in the automobile industry, but that kind of model is not suitable for this cooperation between Nippon Steel and you.”
Warnia said with a calm expression, “Mr. Hashimoto, why is it not suitable for our cooperation? I would like to hear more.”
Hashimoto Kinzaki said with a smile: “First of all, there are too many leading companies in the automotive industry. There are Toyota, Honda, and Nissan in Japan alone, BMW, Mercedes-Benz, Audi, and Volkswagen in Germany, and GM, Ford, and Chrysler in the United States. Not to mention the Ferraris, Lamborghini, and Maseratis in Italy. With such a large number of competitors, it is inevitable that their peers will be underestimated. Everyone will often lower their prices for the Chinese market…”
Speaking of this, Hashimoto’s expression was stern, and he said seriously: “However, there are only a few leading companies in the steel industry. Among the world’s top ten steel companies, half of them are on the list due to large output. There are only three or four companies specializing in the core technology of special steel, and the only company in Japan is Nippon Steel. You have a Chinese saying, “Rare is precious”. Miss Song for the rare cooperation of Nippon Steel Partner, it is normal to sacrifice more interests!”
Warnia hesitated again and again, and said: “Mr. Hashimoto, I really can’t give up any more shares. The Song Group must hold 51% of the shares in this cooperation, but as compensation to Nippon Steel, we can give rope in terms of income rights, Nippon Steel has a certain degree of tilt. For all the net profits generated by our cooperation in the future, Nippon Steel will enjoy 51% of the net profit income rights. What do you think of this?”
Hashimoto Kinzaki shook his head without hesitation, and said seriously: “Ms. Song, we will not make any concessions on the equity issue. If we are willing to make concessions on this point, we will have deep cooperation with other steel companies in your country. How can we wait until today?”
