According to announcements on the Hong Kong Stock Exchange and the Shenzhen Stock Exchange on Thursday, H-shares of China's largest diesel engine manufacturer, Weichai Power Co., Ltd. suspended trading in the morning and A-shares suspended trading since the market opened on Thursday. According to the announcement, the suspension of this time was due to media reports that the company may be involved in mergers and acquisitions transactions. The 21st Century Business Herald reported on Thursday that it has learned from the Shandong State-owned Assets Supervision and Administration Commission that due to the reorganization of Weichai Holding Group and Shandong Construction Machinery Group Company, Shantui Group’s largest domestic bulldozer manufacturer, Shantui Shares, is expected to have a controlling stake. Transferred to Weichai Power held by Shandong State-owned Assets Supervision and Administration Commission. Shantui shares also temporarily suspended trading on Thursday. “The background of this restructuring is to accelerate the merger and reorganization of major industries such as construction machinery, auto parts and steel, and to accelerate the optimization and upgrading of the state-owned economy's distribution structure.†The insider of Shandong State-owned Assets Supervision and Administration Commission told the reporter. ã€News Reviews】 1. Weichai's value chain integration strategy has obvious intentions For a professional commercial vehicle engine, its long-term development strategy has two paths: through the horizontal integration of the industry, it continues to be an independent engine company; it is aligned with the automaker to achieve vertical integration - a way and vehicle The company's joint venture and cooperation (or, at the end, it was acquired by OEMs, such as firewood), the other way is to integrate its upstream and downstream industrial chains and acquire trucks, buses and construction machinery companies. Weichai is taking the path of an independent development. After the completion of the reorganization of Weichai Holdings and Shangong Group, Weichai Power can use this to expand its business scope to the upstream machinery industry. In fact, Sangong Group, which has occupied the market share of the loader, was also a major customer of engineering machinery for Weichai engines. At present, construction machinery engine products bring 40% of revenue and 30% of net profit for Weichai. At Weichai Power's 2009 annual business conference, its chairman and chief executive, Tan Xuguang, said that Weichai’s sales revenue exceeded 50 billion yuan in 2008 and plans to double its sales revenue in 2012 to reach 100 billion yuan. This time, domestic mergers and acquisitions and restructuring, together with the recent overseas expansion (acquisition of Baudouin, France), will inject fresh blood into Weichai's goal of achieving 100 billion yuan. 2. The trend of integration of commercial vehicle parts and components is clearer than that of passenger vehicles and further aggravates the competitive landscape in the commercial vehicle sector. Globally, the concentration of commercial vehicles is higher and there are fewer "leftovers." After Volvo acquired Renault, Volvo Group acquired Nissan Diesel because of Renault’s controlling relationship with Nissan; Volkswagen invested in Brazil to establish its own medium-heavy-duty card business, and through participation in Scania and Mann, it is trying to integrate The commercial vehicle business of the three companies; North America’s IWC trucks have tried to buy the general truck business, but they are temporarily stranded due to the financial crisis. Other commercial vehicle businesses such as Hino and Iveco rely on Toyota and Fiat to maintain their relative independence. China's commercial vehicle market may also experience a similar trend of centralization, and the current domestic commercial vehicle market (especially in the medium- and heavy-duty truck business) is more concentrated than the passenger vehicle market. We can see that domestic and foreign commercial vehicle manufacturers are developing their own competitive advantages in their respective fields through different joint ventures and cooperation strategies. Fukuda is conducting a new joint venture with Daimler, GM is cooperating with FAW's light commercial vehicle business, ZF is trying to acquire cavities, and Cummins is also making a joint venture with North Korea, etc. Everyone is struggling to adapt to the competition under the new situation. layout. The trends of these large companies will in turn further aggravate the competition in the commercial vehicle sector. Although the current economic situation is not good, the entire M&A market is not active enough. However, some companies are in a very difficult period and are more willing to develop through strategic reorganization. Therefore, it is a good opportunity for powerful companies to acquire companies to achieve strategic development. 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