The Industrial Giant Reborn

Chen Zhiwen said: "It doesn't matter when you invest. Brazilian law doesn't stipulate that foreign companies cannot invest in Brazilian mineral companies, right? It just limits it to no more than 25%. I don't want a lot of shares, just an appropriate amount."

Today's global mining industry is still different from the monopoly of the three giants 20 years later. Rio Tinto and others are only one company with pretty good strength. The formation of the three giants will be the result of mutual interaction between the mining giants in the next few decades. Result of mergers and acquisitions.

As for Vale, it is currently only one of Brazil's mining giants and is not considered a monopoly. Therefore, it is not strictly protected by the government. Moreover, once such a company goes public, the shares will naturally have to be divided, but it is not yet available. Not yet on the market.

Today, Brazil's economy is on the verge of collapse. Last year's foreign debt reached 91 billion U.S. dollars, and a sovereign debt default of 1 billion U.S. dollars occurred. The lawsuit reached the U.S. Supreme Court, and several Brazilian cargo ships were confiscated. In 1981, Brazil's GDP fell by 1.1%, and by 1983 it fell by 3.9%.

You must know that in the mainland of later generations, when the GDP growth rate was less than 6%, everyone felt that the economic difficulties were difficult, and the GDP was negative. That level could only be described as a severe recession. By 1985, that is, next year , the current government that has been in charge of Brazil for nearly 20 years stepped down, and the fundamental reason was the economy. Of course, there is also the factor of bad luck.

Before the Brazilian consul came here, Chen Zhiwen had taken advantage of Brazil's economic situation in recent years, which also made him think about what he should ask for in return if Brazil asked him for something.

Vale, the future iron ore giant, is naturally the first choice. Although various mergers and acquisitions in the future will definitely lead to dilution of equity, it is also good to get a share now.

"If you just take a stake and don't participate in the iron ore rights, the resistance may be smaller." Tavaris said after thinking for a moment.

"In terms of rights and interests, it is the rights that every shareholder should have. If this is not the case, then what should I do if I buy shares? But we can agree on a time first. During this time, my rights and interests can be handed over to Vale. If I can buy shares If so." Chen Zhiwen said.

Ore equity means that the ore dug out by a large mine will be distributed to different shareholders in proportion. This is a rule unique to the mining industry. This is because the ore itself is a strategic resource, and some energy sources are even the lifeblood of the economy. The more such rights and interests it acquires, the greater its influence will be on a global scale. Japan invests heavily in mining giant companies around the world just to win this rights and interests. Otherwise, according to normal business rules, a single non-controlling major shareholder Under such circumstances, there is no way to interfere with the company. Then wouldn’t the Japanese consortium give money to these mining giants for no reason? Even for some large mining companies, each shareholder directly negotiates and allocates rights and interests according to the mineral deposits in different regions.

Chen Zhiwen entered the ore industry for this purpose. Otherwise, although the ore industry is not low in profits, it is not worth investing so much resources. After all, if he only cares about money, he can build as many more buildings in Hong Kong or the Mainland as he wants. Buildings, judging from the data, are definitely more profitable than investing in mining.

Especially in the future, the mainland will be in short supply of various metals such as iron ore and copper ore. The demand for this piece of metal will be very high in the next few decades. Entering this market yourself will be beneficial in every aspect. Of course , if there is an opportunity to enter the field of oil and natural gas in the future, it will be more popular than minerals, but it may be a bit difficult.

"In this case, I need to discuss it with some domestic departments." Tavaris said after thinking for a moment. He actually knew that Brazil's various mineral deposits would definitely be of high value in the future, but now the Brazilian government is in a serious shortage of foreign exchange, even to the point of It is very difficult to import oil, and the country has also begun to restrict the refueling of civilian vehicles. If this situation continues to worsen, it will be even more troublesome if it reaches the food field.

Although Brazil is the world's largest agricultural producer, much of its output is contracted by various grain trading groups. As one of Brazil's largest sources of foreign exchange, they now dare not offend these grain giants.

"If we can acquire a stake in Vale, I can promise that Midea will place some orders with some electronic parts companies in Brazil. However, no matter what, the quality must be in place, and the price must be at least as cheap as other peers. , As for the order volume, it still depends on our subsequent cooperation." Chen Zhiwen said with a smile.

If it is some small parts, they are not very sensitive to transportation costs. Although purchasing from South America seems a bit troublesome, it is part of the transaction itself, and how much you can trade naturally depends on how much Vale you can get. of shares.

Of course, if your home appliances can sell well in the Brazilian market, it is not impossible to move this production line there. The Brazilian home appliance industry will not be sanctioned by the United States in the future. Anyway, building home appliance factories in Brazil is also for domestic sales or sales to other countries in South America. Compared with game consoles, home appliances are too large in size and weight and have high transportation costs. Local production may be more cost-effective. Later companies such as Haier also started production in Brazil.

For this kind of industry, Brazil’s internal self-protection must be very strict, because they can do it themselves. This is an economic idea, but because of this, local industries have no competitiveness and cannot enter the international market at all.

"I understand. Mr. Chen, I will reply to you as soon as possible." Tavaris nodded and said, although the other party's request was a bit beyond his expectation, it was much stronger than those European and American countries that made zz requests.

"Mr. Tavaris, if we talk about the farm matters just now, if we talk about it separately, it should still be effective, right?" Chen Zhiwen asked again.

"Of course." Tavaris smiled knowingly after hearing this. He understood that Chen Zhiwen was also attracted by the conditions he brought when he came over, but maybe he would rather get shares in Vale. But now we need to talk about the farm alone.

In fact, in Tavaris' mind, the sale of state-owned farms in exchange for U.S. dollars may be more important than the electronics industry. Although the latter is of great significance, it takes a long time to be effective. The current situation in Brazil is that there is an urgent need for U.S. dollars. , even if you default, you must have some US dollars in your hands, otherwise if the entire country cannot buy some necessities that cannot be produced, society may be in turmoil.

"In that case, I will send someone to Brazil and ask the locals to take a look around. If there is a suitable location and the price is acceptable, then I can consider buying it." Chen Zhiwen said.

Although large-scale farms may depreciate or even lose money in terms of price, they will never do so in terms of value. Food will always be the most basic material in human society. Unless one day there is a breakthrough in controllable nuclear fusion, then food will It became a bargain price, but based on his understanding of the future, when Chen Zhiwen's grandson passed away, this day would probably not come.

When you have spare funds in your hands, investing in a farm is a good choice. Moreover, this kind of investment is essentially a credit investment. It is said that investing in Japan or Hong Kong has a higher return rate, but these two things do not actually affect it. Because for the farm he invested in, he only needed to provide a small amount of funds, and the rest was paid for by his own credit, that is, a loan.

"Actually, there is another cooperation model, but I wonder if Mr. Chen will resist it?" Tavaris said suddenly.

"What model?" Chen Zhiwen asked curiously. As long as it's not illegal or goes against basic morals, and it's profitable, there's probably nothing he would object to.

"Amazon Rainforest, is Mr. Chen interested?" Tavaris said.

"Rainforest? What do you mean? Forestry? I have no relevant experience in this area, and I don't plan to enter it." Chen Zhiwen shook his head and said that he could not do all industries, and forestry was far from his main businesses.

"No, it's about developing the edges of the Amazon rainforest and turning it into large farms or pastures." Tawadis said with a smile: "As for the wood, we will have a specialized company to recycle it."

"Developing the rainforest?" Chen Zhiwen nodded. This seems to be something that Brazil and even many South American countries often do.

"It is easy to bulldoze the rainforest, but converting such a large area into large-scale agriculture requires very high investment. We have also approached European and American capital, and they actually wanted to participate, but the internal environmentalists were under too much pressure, and in the end Let's just let it go. Mr. Chen has enough capital and we have enough land. Wouldn't such cooperation be perfect? ​​However, if Mr. Chen feels that our Brazilian government has done something wrong in this matter, then it can only be forgotten. ." Tavaris said.

"No, I think it's right. Those European and American countries developed hundreds of years ago and destroyed their own rainforests and polluted the global environment. Now that their economies are better, they require other developing countries to protect the environment. Not developing the economy is simply double standards." Chen Zhiwen said with a smile.

The environment is indeed very important, there is no doubt about this, but this is not a reason not to allow poor countries to develop the natural environment. People in many places do not have enough to eat, so what is the future of mankind? Moreover, environmental protection is, to a certain extent, a means for developed countries to use their so-called "righteousness" to oppress developing countries.

"Haha, if this is the case, we will definitely be happy to cooperate. The price of the rainforest is very low. One square kilometer may only cost a few thousand US dollars. However, the subsequent development costs and farm investment require your own investment." Varys said with a smile.

"What about road traffic? I can't spend money to convert a large piece of land into a farm and then the food can't be transported out, right?" Chen Zhiwen asked.

"Of course there are roads, but they may not be very good, so that's why prices vary in different places. The specific situation needs to be looked at based on the conditions of each piece of land," Tavaris said. : "If the infrastructure and transportation are not good, then just don't buy the one over there. There is always something suitable for you in the entire rainforest and thousands of kilometers around."

"That's not bad. There are many choices." Chen Zhiwen nodded and said, "How long is the development cycle?"

A few thousand dollars per square kilometer of land is already a bargain. Normally, the government would require a development cycle to ensure heavy investment from foreign capital, otherwise the land would be taken back. This is actually the same as later generations of mainland China using free land to attract foreign-invested factories, but Brazil is currently engaged in agriculture.

"The general requirement is that within five years, at least the prototype of the farm must be produced. The specific details are stipulated by the Ministry of Agriculture. I can send you the information later," Tavaris said.

"Can we discuss this time again?" Chen Zhiwen asked again. In fact, it is not the best time to invest in overseas farms on a large scale. At most, we can buy some land and invest real money. The best time is to When a large amount of your own funds come out of the Japanese market, in addition to some high-quality infrastructure projects and real estate projects in the mainland, it will be a good choice to go to these farms for actual investment.

After all, no matter how high the return rate of the IT industry in the United States is, they are very small in the early stages and can accommodate relatively limited funds, so they do not need huge amounts of funds at all.

"Generally speaking, no, but we still need to discuss the details, Mr. Chen." Tawadis paused and said, this is actually normal. Will foreign capitalists follow your regulations? That was a dream.

Not to mention that Brazil is currently short of foreign exchange. As long as there is foreign exchange, we can negotiate no outrageous demands.