1、Target 1Target 5 Name of targetChina National Offshore Oil Corp. (CNOOC)China International Marine Containers (Group) LTD. (CIMC) Net assets (Rmb million) 27,9242,106 Employee21,00010,000 Main business description Exploration and production of offshore petroleum and natural gas resources, refining,
2、petro-chemical, and natural gas processing and utilization. 94% on manufacturing ISO standardized containers,refrigerated containers,special container and other business including timber products,construction,real estate and electrical machinery. Industry typea new sector in energy industry;knowledg
3、e 2)They have been looking for some non-core business opportunities and have had strong interests in the financial sector for a long time;3)They will be able to further improve the CIMCs name recognition by forming a JV with Aegon given Aegons world market position in the insurance business, which w
4、ill likely bring more core business to CIMC. Share ControlingSince CNOOC is unfamiliar with life insurance business currently and this is not going to be their main line of business, they are mo re interested in getting reasonable investment returns rather than having a controlling majority share in
5、 the future. Therefore, they do not see a problem of letting Aegon have the controlling s hare if the regulation permits. CNOOC does not want to have thre e investors in a life insurance JV. Since CIMC is unfamiliar with life insurance business and this is not going to be their core business, CIMC h
6、as no intention to run this life insurance JV and does not have any problem of letting Aegon have the controlling share if the Chinese regulation permits. ReputationCNOOC is one of the three companies in oil exploration and production business in China.So far,CNOOC has signed more than 100 contracts
7、 with 40 countries and none of them needs international arbitration. CIMC is a worlds leading manufacturer of containers and its market share is more than 1/3 of the world total container sales in 2000.However, one of its subsidiaries, an airport equipment maker, faced a law suit filed by Jetway, an
8、 American company and lost the case. Government support CNOOCs establishment is approvaled by State Concil and it has overall responsibilities for the exploitation of offshore petroleum and natural gas resources in the Peoples Republic of China in cooperation with foreign enterprises. As been a key
9、player in the Chinese manufacturing industry and a big “tax payer” to the local governments where it has manufacturing facilities / plants, company usually enjoy strong policy and financial support from the local as well as the central governments. Government ties / networks Maintains a good working
10、 relationship with government. (Companys top executive is usually appointed by the central government because of the importance and role CNOOC plays in the countrys economy.) Maintains a good working relationship with government. Professional qualifications More than 90% of CNOOCs management staff h
11、ave at least a u niversity degree. About a quarter of the mid and high level manag ement staff studied overseas and have their MBAs. The manager of their finance department is an expatriate staff with a PhD from t he US. More than 80% of the high level management staff have at least BA degrees. Engl
12、ish communication Given the education and professional background, it should not be major problem for Aegon to communicate easily with CNOOC. About 23 of the 11 top executives can fully communicate in English and had some years of work experience in Hong Kong. Most others can read and understand Eng
13、lish, but relatively poor in spoken English. Overseas / JV experience Rich experiences in JV or other types of international corporation Have overseas rep. Offices in Houston, Jakarta, Tokyo and Singapore Given that CIMC was once under the management of EAC, most management staff are well oriented i
14、n terms of western management / business philosophies and practice making it easier for CIMC to develop any new business with foreign companies. Cross-industry experience Has rich experience on cross-industry managementalmost none,other business such as timber industry, mechanical and electrical equ
15、ipment, infrastructure and real estate are very limited comparing with core business. Geographical coverage Coastal area from the north to southCoastal cities from the north to south. Overseas businesses are done through Hong Kong Customer type CNOOCs main customers are large oil refineries in China
16、 and ab road. Most of their domestic customers and business activities ar e located in Chinas coastal regions. CIMCs main customers include 50 large foreign companies ( a top-10 foreign customer list was provided to us) and three local ones, they are two largest Chinese ocean shipping companies and
17、Ministry of Railway. Business directionCNOOC has invested in a variety of businesses and gained lots of industry experience, though their knowledge about life insurance is limited at this moment. The company has had strong and steady growth over the past years and they are very confident about the c
18、ompanys future. One of the companys strategies is to expand into oil related new businesses such as oil refineries and fertiliser plants. They expect to achieve at least a15% rate of investment from them. The future prospects for CIMCs business may be between strong growth and steady growth and reas
19、ons are as follows:1)large untapped market potential in China given the low percentage use of containers in transportation; 2)impact of Chinas accession to the WTO and growing foreign trade will most likely increase demand for containers;3)less developed countries needs and demand for containers wil
20、l remain fairly strong which includes demand for new containers and replacement of the old containers;4)developed countries demand for containers will not grow significantly, but will remain stable in the future;5)demand for special- purpose containers such as refrigerated containers will grow stron
21、gly in the future. Positive media coverage Moodys Investors Service and Standard & Poors have assigned a Baa2 and BBB issuer rating to CNOOC respectively. It is the highest rating ever received by Chinese companies and the first by SOEs.(9-29-01) The famous Asian Finance magazine released the ranking of mainlan best-performing enterprises for the year 2001.CNOOC is no.4. CIMC has been a
