We are all reborn, who wants to be the richest man?
Chapter 475 Integration of the White Sugar Industry
The first meeting of the Far East Association ended successfully. Many people returned to their families on the same day, but Luo Nianzhong's business was not over yet.
The conference is over, and there is another small meeting waiting for Luo Nianzhong.
Nine o'clock in the morning, at the top floor restaurant of the Peninsula Hotel.
There were basically no guests at this time of year, and it was no exaggeration to say that the empty hall was reserved.
In a well-hidden corner at the innermost part of the restaurant, Luo Nianzhong was discussing something with two men in their fifties or sixties.
The two are regular members of the Far East Club, and have worked with Robert Kuok, with whom they have met several times, and Indonesia's Huang Yicong.
The industries of these two people overlap a lot, but the sugar industry definitely accounts for the largest proportion.
White sugar is a strategic material, and now Luo Nianzhong is about to enter this field.
There is no need to mention Robert Kuok, the Sugar King of Asia.
The entire sugar industry in Malaysia and Thailand is under his control, and he controls 15% of the world's sugar.
What about Huang Yicong? His family is also one of the four major sugar kings in Indonesia. Almost all of the sugar industry of the old sugar king Huang Zhonghan was divided up by these two people.
This old sugar king is a legend. Not to mention his 18 wives and 42 sons, he is known as the man with the most affectionate love history in Southeast Asia, and his career also influences the global economy.
At his peak, Huang Zhonghan controlled a quarter of the world's sugar industry, and his wealth exceeded that of Rockefeller and Ford, who were at the peak of their powers at the time.
It's a pity that having many wives, concubines and children is not always a good thing, because they cannot get along well and are constantly in conflict.
The Huang Zhonghan family died out in three generations because of this reason, and the two people in front of us inherited most of the old sugar king's sugar business.
“I am optimistic about the demand for white sugar. According to the analysis and research within Far Eastern Bank, the current market demand for white sugar will double in 30 years.
If the three of us can join together and acquire a large number of plantation sugar mills, we can completely control the world's white sugar market.
Globalization is inevitable, and you two should all be aware of the big mergers and acquisitions in the United States.
Why do these companies come together? Aren’t they trying to increase their market share and become the market maker? "
After hearing what Luo Nianzhong said, the two looked at each other and saw signals of love in each other's eyes.
The sugar industry controlled by the two families together accounts for 20% of the global market share. If they are supported by the Far East system, it is not impossible for them to completely control the raw sugar market and become a banker.
It can be said that the Far Eastern Group has no sugar industry, but it has money and channels. Moreover, the Far Eastern Group itself is a major sugar user.
With funds, large investments can be made in advance. Everyone knows that the market demand for raw sugar is increasing, but no one dares to think that it will double in 30 years as Luo Nianzhong said.
If this is true, making arrangements now will definitely give us a head start.
Only by filling the raw sugar gap in the market due to increasing demand every year can we discourage more people from entering this field.
Another thing is the channel. Watsons' huge global sales channel is no joke. With it, they can ship the sugar produced in their sugar factories to the whole world.
"President Luo, can you tell me about your plan?"
It is impossible for the two of them to make a decision and do it just because of the words "control the raw sugar market".
“Who are the world’s largest raw sugar exporters? Cuba, Malaysia, Thailand, Indonesia, Australia and Brazil.
Not to mention Malaysia, Thailand and Indonesia, most of the market share is in your hands.
Australia is very simple. There is no control or trade restriction on sugar. As long as you have money to build a dock and acquire and develop a large number of plantations, you can participate.
Brazil has been moving towards alcohol and ethanol in recent years, and its raw sugar exports have become scarce. Coupled with the debt crisis, it will take at least a decade to make the transition."
Raw sugar can not only be used to make table sugar, but also alcohol and ethanol.
Brazil is currently experiencing a debt crisis. It is not cost-effective to export raw sugar and then import ethanol and alcohol. Their raw sugar exports will not change much in the next ten years.
"As for Cuba, the world's honeypot, I have a way to take their share."
When they heard that Luo Nianzhong could get Cuba's raw sugar share, their eyes lit up, and at the same time they were deeply shocked by the Luo family's capabilities.
The reason why Cuba is called the world's honeypot is that its raw sugar production accounts for 20% of the world's total. This is also one of Cuba's two major sources of export earnings, the other being the world-famous Cuban cigars.
Why did Cuba's sugar industry decline decades later? It was because of the decades-long economic blockade by the United States.
Without fertilizers, insect repellents and large machinery, farmers cannot make a good profit from growing sugarcane.
Now they are not afraid because of the polar bears, and their raw sugar can be exported to the polar bears and their allies.
But what will happen after the polar bear disintegrates? Most countries in the world are afraid that the United States will not sell Cuba fertilizer machinery, and Russia, which has the ability to take care of Cuba, is unable to take care of itself, and its domestic economy is in a mess.
This gave Luo Nianzhong an opportunity. He could invest money to develop trade between the Far East and Cuba, and then control Cuba's raw sugar market.
However, the Luo family has plans for both Russia and the United States. It doesn't make sense that the United States has capital but I can't touch it at all, and Russia won't agree to that either.
Moreover, Russia's Far East must be developed. Even though most of its northern areas are not suitable for farming, its overall area is still large.
Crops such as soybeans and sugar beets can be grown in the southern part of the Far East, while the timber and animal husbandry industries can be developed in the north.
Given Huang Yicong's family's share of the sugar industry in Indonesia, even if they don't approach him, it won't affect the plan to control the sugar industry. The reason they approach him is because his family is currently the largest papermaking company in Asia and will be the largest in the world in the future.
Another point is that their family controls Indonesia's largest palm oil industry. Luo Nianzhong will definitely not let go of the oil industry. Bringing him along this time is to give both parties a basis for mutual understanding and to establish a relationship of trust.
“What are the specific operations and equity ratio?”
With the two companies' market share in the sugar industry, if they can take over Cuba, even half of Cuba's share, the new company will control about 30% of the world's sugar trade, and at that time will truly have the right to set the price of raw sugar.
"I want to take the lion's share." Luo Nianzhong made no secret of his aggressive and almost predatory behavior.
Seeing that both of them were about to speak, Luo Nianzhong raised his hand to stop them.
"But I am willing to make concessions on the financial company. Just 40% of the shares will do."
Now that you are the banker, does selling candy make most of your money?
How is that possible? The profits in the financial market are the real profits.
In this regard, whether it is the Hong Kong futures market, the New York futures market or the British futures market, the two cannot compare with Luo Nianzhong.
Channels are one thing, but to be a banker one needs to have a large amount of capital in hand, and both of them have to look at Luo Nianzhong's face for this.
If you calculate it this way, Luo Nianzhong is actually at a disadvantage, but the two of them didn't seem very happy about getting the upper hand.
The levels are different. While they are still focusing on profits, others have already risen to another stage and started seeking to become bankers in various industries.
"I need to go back to Kerry Group to convene a board meeting to discuss it."
"Me too. I need to get back to the family to discuss this situation."
Even though Huang Yicong is the one who benefits the most from this collaboration, his words carry much less weight than Robert Kuok's in agreeing to this decision.
As long as it is profitable for Kerry Group, neither the Guo family nor the shareholders of Kerry Group will have any objections.
But Huang Yicong's family is different. His branch mainly deals in pulp. In the agricultural product AFP company, although he is the leader, he does not have the final say.
Those large number of plantations in various places are in the hands of other branches, so he needs to go back and communicate within the family.
This is like pie in the sky, but no one can guarantee that those stubborn old guys will be willing to do it.
The current model is to ensure a stable income regardless of drought or flood, but if it involves the financial industry, no one can predict the outcome.
“Don’t worry, I will be in Temasek these two days, and I will come to Temasek to stay for a while after the New Year.”
Don't forget that the Luo family is one of the shareholders of Temasek Holdings. Luo Nianzhong plans to personally attend this year's annual meeting to learn about the companies under Temasek Holdings and the development of Far East industries in recent years.
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