Sanan Optoelectronics intends to "snake" Osram or face policy obstruction

Domestic LED manufacturers are flocking to the international market for mergers and acquisitions. When Mu Linsen’s acquisition of Osram’s Landvewans has not yet reached the dust, other domestic manufacturers have begun to acquire Osram’s idea. Recently, news about Sanan Optoelectronics or the acquisition of Osram has been rumored in the market. Sanan Optoelectronics subsequently clarified that it had preliminary contact with OSRAM related parties, but whether the acquisition will occur is subject to significant uncertainty. A number of interviewees told reporters that if Sanan Optoelectronics succeeded in acquiring Osram, it could increase a large number of patents, boost the expansion of the international market, and further promote global brand awareness. However, the success of the acquisition depends mainly on whether the German government can finally release it. Initial contact The rumors that Sanan Optoelectronics intends to acquire Osram were originally derived from the October 6th report of the German media "Economic Weekly". Osram is a German old-fashioned lighting giant. It was founded in 1919 and is currently one of the world's largest light source manufacturers. It is also ranked as one of the world's three largest lighting giants with Philips Lighting and GE Lighting. According to public information, OSRAM's semiconductor technologies such as LED and OLED are leading the world. In terms of LED, it has already entered the entire industry chain. Sanan Optoelectronics is the world's second largest LED chip supplier after Taiwan's Jingyuan Optoelectronics. On October 11, Sanan Optoelectronics issued a clarification announcement: After self-examination, there is a preliminary contact with OSRAM related parties on a potential acquisition transaction or cooperation, and the two sides only met once. As of now, there are no negotiations on the terms of the transaction (including scope and price), no binding documents, and whether the acquisition transaction or cooperation matters and related negotiations have significant uncertainties. The implication is that Sanan Optoelectronics may have plans to acquire Osram. On October 19th, the reporter asked the Sanan Optoelectronics Board of Directors to discuss the latest progress of the merger. The other staff member responded that the specific situation is not yet known. This is what the company's top management is planning, and we don't know it. Some industry analysts told reporters that Sanan Optoelectronics' acquisition of Osram will be a high probability event. Some insiders said that with the rise of domestic LED manufacturers, Sanan Optoelectronics acquired Osram, and the layout of patents is the core factor for its consideration. There are many patents involved in the LED industry, and these patents are mainly in the hands of such large manufacturers as Osram. If Chinese manufacturers want to sell LED chips to overseas markets, they may involve patent disputes. When the company is small and has a small market share, these risks are small, because people don't think you will pose a big threat; but if your company is large and has a large market share, people will initiate litigation. Although Sanan Optoelectronics itself has made a lot of patent layouts, there are still gaps compared with other major international manufacturers. Lighting analyst Han Yun said that OSRAM's lighting, chips and brands have great advantages, which greatly complements Sanan's optoelectronic business. As for the brand, Osram's brand has a history of 100 years, which is very attractive to Sanan Optoelectronics. The scale of Sanan LED industry is not small, but there is still a certain gap between the brand and international recognition. In terms of technology, Sanan Optoelectronics' R&D technology is at the forefront of the country, and the cost of investment is very high. If it is acquired, the efficiency of technology will increase faster. Although Sanan Optoelectronics is a global LED chip giant, its main product sales share is mainly in the Chinese mainland market. According to the company's semi-annual report this year, the operating income of the mainland market and the mainland is 2.339 billion yuan and 439 million yuan, respectively, the ratio is about 5.33:1. In recent years, in order to enhance the coverage of the overseas sales market, Sanan Optoelectronics has also expanded overseas. For example, in June 2013, Sanan Optoelectronics acquired Luminus Devices, Inc., which aims to open up the North American market. In August 2014, the company established a wholly-owned subsidiary, Hong Kong Sanan Optoelectronics, with the goal of opening up the Japanese market; In December, the company cooperated with Seoul Semiconductor Co., Ltd. and Seoul Viosys to establish a three-party joint venture to develop the Korean market. The industry also believes that if Sanan Optoelectronics can win Osram, it will undoubtedly help to expand its overseas market.

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