Finmeccanica, here are the projects of the mysterious Chinese Insigma for Ansaldo

Formiche, December 16, 2014 (Italian language, Google translation)

The Chinese went ahead of the Japanese in the race for the acquisition of the two Ansaldos of Finmeccanica?

Hard to say.

But today the Sole 24 Ore reveals that the Chinese consortium - which has since changed its horse, from CNR Society to UME/Group Insigma - sent to the Finmeccanica Group a binding offer.

(NOTE: ‘The two Ansaldos’, Ansaldo Breda and Ansaldo STS, are the parent companies of Ansaldo Honolulu, which has a contract to supply the rail cars for the Honolulu rail system and maintain them afterwards.)

THAT'S NEW

Announcements are different. First, the Chinese consortium has submitted a binding offer (unlike the Japanese Hitachi that you would be limited to a proposal and not a binding offer) to purchase 100% of the subsidiary of Finmeccanica, Ansaldo Breda.

FIGURES

The Chinese have confirmed a financial commitment of more than EUR 1.5 billion, through the China Merchants Bank (CMB). This sum - according to the Sun - takes into account both the price for the entire share capital of Breda, who would be given a positive value, is the much higher price for the operation connected to Breda, ie the purchase of the company signaling Ansaldo STS, 40% owned by Finmeccanica and the focus the attention of the American administration for the relevant orders of Ansaldo STS in the United States.

DIFFERENT CODES OF BEIJING

At first there was talk of a consortium led by the giant CNR (China National Railway) with a range of partners including Insigma. Then the rope is evaporated. A few days ago has been revealed a new consortium, this time led by Insigma, assisted by corporate partner, Chengdu Xinzhu Road & Bridge, but deals with buildings and bridges (here all the secrets of the giant).

WHO Xinzhu

The group of Chengdu, Sichuan Province, was founded in 2011. Since September 2010, is listed on the list of Shenzhen. It has a capital of 280 million RMB (28 million euro) and total assets of 3 billion yuan. In all, has about 3000 employees. Over the past decade, as the name itself, the company has built a name in the supply of machinery and components for the construction of bridges and roads, with projects in Venezuela, Libya, Georgia.

OFFER OF CHINESE

Now emerges Insigma, or rather its subsidiary UME (United Mechanical & Electrical), together with a partner, says the newspaper of Confindustria. The Chinese Insigma - said today Gianni Dragoni on Sole 24 Ore - offering speak of "merger" with Breda. Therefore "not an acquisition but a merger." With the business plan, the Chinese are committed to safeguarding the whole occupation of Breda and also of STS. "The critical point - writes Dragoni - is Breda, for which the Chinese undertake to save all three plants offered for sale by Finmeccanica, ie Pistoia, Naples and Reggio Calabria."

KNOTS TO WIND UP

Among the contracts of Ansaldo under the lens of the groups concerned stands out the contract of 1.5 billion euro in 2010 signed by Finmeccanica to supply 50 trains Etr 1000 the State Railways. In its proposal, the Japanese group Hitachi had expressed concern about the risks of delays and then penalties.

WORDS OF damping MORETTI

By Finmeccanica, in the morning did not arrive denied nor confirmed: "The newspapers say, I do not know if true." So the group's managing director, Mauro Moretti, interviewed on the offer binding the Chinese group would present Insigma for Ansaldo Breda and Ansaldo Sts. Asked if at this point, the other suitor, Japan's Hitachi, is to be considered out of the game, Moretti replied dry: "No". As for the timing of the decision, Moretti has confirmed those already announced, that is, within the year: " We talk about it after Christmas . " And in the afternoon, a press release of the group's Piazza Monte Grappa attests: "Finmeccanica announced that it received the offer of the company for the purchase of Chinese Insigma Ansaldo Breda".

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About Us: Xinzhu Corp. (Customers comprise a list of world’s most dictatorial and/or terrorist connected countries.)

Reuters: Insigma group makes binding offer for Finmeccanica rail unit: sources

IFQ: Finmeccanica, from Chinese Insigma offer to buy AnsaldoBreda and Sts

Bloomberg: Finmeccanica: "In the race for Ansaldo got the offer of Chinese Insigma"

News Release: Confirming Receipt of Offer

GC:  W. China’s No.1 Rail Transit System to Emerge in Xinjin

Flashback Nov 20: Nobody Commits to Buy Ansaldo: Deadline Extended Again for Parent Company of Honolulu Rail Contractor