Return to 1958 and build a century-old giant

Chapter 937 Target: Rolls-Royce

A week later, after settling all of Hong Kong Land's internal financial matters, it was officially announced that Cheung Hing Properties Group would privatize Hong Kong Land.

Upon the news, Hongkong Land's share price surged another 16%, and the entire real estate sector also rose in response. Cheung Hing Group's privatization of Hongkong Land clearly indicates its strong optimism about the future of Hong Kong's real estate industry.
Confidence is what the stock market and the real estate market need most. Often, what matters most is not how things are going right now, but what will happen in the future.
With a series of positive developments in the Sino-British negotiations, Hong Kong's economy seems to be approaching a turning point.
"Could it be that because of my influence, Hong Kong's economy has recovered ahead of schedule?" Yang Wendong looked at the recent real estate and stock market transaction data in Hong Kong and wondered to himself.
This is also possible. After all, his current financial strength far exceeds the combined wealth of the four major trading companies in history. In a small market like Hong Kong, the fact that such a powerful conglomerate is showing such strong confidence could very well create a positive cycle.

But it doesn't matter anymore. The outcome of the Sino-British negotiations will never change. No matter how strong his influence is as a businessman, he can't affect such a historic event.
It doesn't matter when Hong Kong's economy recovers, because it will remain in a state of rapid growth for the next ten years or so, until after 1997 when Soros launched the Asian financial crisis. Before that, there's not much to worry about.

"Knock knock knock~" A knocking sound rang out, and Yang Zhiwen walked in: "Daddy, we're ready to leave."

"Okay." Yang Wendong nodded; they were preparing to go to England.

During the Sino-British negotiations, Changxing Group made several large investments in mainland China, so now that the outcome is settled, it will invest some more in the UK.
This is not about giving away money, but about choosing industries that will generate some future profits or have relatively long-term stability, which is also beneficial to the future stability of one's own family.
At his current level, he no longer pursues extreme profit margins, but rather chooses some safer businesses.
The group quickly arrived at Kai Tak Airport. After getting off the car, Yang Zhiwen saw two airplanes and asked in surprise, "Daddy, why are there two airplanes here?"

At this moment, a Boeing 747 and a Boeing 737 were parked on the tarmac, which were the two aircraft owned by the Yang family.

“We came here in different cars,” Yang Wendong said. “From now on, we’ll also take different planes. You should understand that logic, right?”

“I understand, similar to the president and vice president of the United States.” Yang Zhiwen nodded and said, “But isn’t our family being a little too cautious?”

Yang Wendong laughed and said, "It is indeed a bit cautious, but an extra plane and a little extra fuel cost are just a drop in the ocean for us, so there's no need to worry about them."

Besides, you're a young person. It's fine if you work with me, but there's no need for you to be with me at other times. You'll be more happy having fun on your own.

Normal children, after growing up, don't really want to stay with their parents. This is one of the reasons why many people choose to go to university far away. After all, every adult individual pursues independence.

Yang Wendong, in his youth, also deeply understood this point.

Given the current size of the Yang family, it's impossible for the heir to work outside the home. However, they are free to do so outside of work hours, as long as they pay attention to safety.

"Okay, thank you, Daddy." Yang Zhiwen understood what he meant.

"Let's go, get on the plane. You can take the 737; it's a smaller plane, so be careful of the turbulence," Yang Wendong continued.

Yang Zhiwen said, "Yes, Daddy."

Ten hours later, the plane arrived over the UK.

After resting at his own hotel for one night, Yang Wendong visited Prime Minister Thatcher the next day.

“Ms. Thatcher, you look much younger than when we last met,” Yang Wendong said with a smile as he shook hands with her.

Thatcher laughed and said, "Eric is quite the joker. Please have a seat."

After the two sat down, they chatted about other things for a while, and then Thatcher asked directly, "Eric, you should be aware of the situation in Hong Kong. I would like to formally invite you to become a British citizen, while you can retain your Hong Kong identity. This will facilitate your business around the world."

"Ms. Thatcher, thank you for your kind offer, but I still do not wish to acquire any other nationality," Yang Wendong said, shaking his head in refusal.
On the one hand, I didn't want to; on the other hand, there were too many lessons to be learned from my past life.

Europe and America are in charge of the global order, so they still abide by the rules they set. This is the foundation for Yang Wendong's business empire to expand globally.

But decades later, this group could no longer maintain its hegemony and began to show its robber nature again.

“That’s a real shame.” Thatcher had also come to understand Yang Wendong’s political leanings based on his behavior over the past two years, so she asked, “Eric, did you come to England this time to make investments?”

Yang Wendong said, "Yes, I heard that British Telecom is preparing to sell 50% of its shares, and I am quite interested in that."

Current British policy will inevitably maintain state control over the telecommunications sector, but this may not be the case in the future. Although the process is unclear, Yang Wendong visited Europe in the 2010s in his previous life, where Li Ka-shing's telecommunications business was located. This suggests that foreign investment will be allowed in the telecommunications sector in Europe in the future.

This is also an opportunity for me. The telecommunications industry is the cornerstone of the future internet and high technology. If I can invest in a portion of it, the return on investment will be very high. In addition, it has a very strong influence.

“A telecommunications company?” Thatcher thought for a moment and said, “Telecommunications involves national security, and there are no current laws to regulate it. However, I personally and Parliament are unlikely to agree to give you so many shares. I need to discuss the specific amount internally.”

Previously, these were all state-controlled, so there was no need to enact laws to restrict foreign ownership.

The privatization of state-owned enterprises is no longer just a matter of funding; it also involves legal issues.

Yang Wendong nodded and said, "Okay, I'll wait for your news."

He was prepared for this; such matters couldn't be settled immediately. Even if there were no legal issues, he would still have to compete with other conglomerates, and the political resources of conglomerates in the UK and other European and American countries were no weaker than his. Thatcher then asked, "Besides British Telecom, what other areas do you hope to invest in?"

“I also want to acquire some British car companies,” Yang Wendong replied. “For example, Rolls-Royce.”

"Rolls-Royce?" Thatcher exclaimed in surprise. "Are you sure that luxury car brand companies don't have a very large market share?"

"Of course, how could I possibly boast in front of you?" Yang Wendong said with a faint smile;

Rolls-Royce, as a luxury car brand, focuses on the highest-end brand and insists on handcrafted production, which makes the production cost extremely high. Furthermore, due to the limited market quantity, the research and development costs cannot be recovered at all.
This isn't just a problem for Rolls-Royce; other high-end brands like Ferrari, Maybach, and Bentley also have this issue, and they'll lose money no matter how they operate.

Later, it was acquired by car brands such as BMW, Mercedes-Benz, and Volkswagen, who leveraged their advantages to gradually stabilize the situation.
He knew, of course, that such a company would have a hard time making a profit, but he still wanted to acquire it.
Even if Rolls-Royce is losing money, its scale is insignificant to him; however, the reputation of Rolls-Royce will be of some help to his future car group and even to himself.
Having entered the second half of his life and achieved success in various fields, Yang Wendong is preparing to embark on a new, exciting business venture: the automotive industry.

Owning a high-end luxury brand and having certain R&D capabilities will be helpful for the future automotive industry chain. Furthermore, he may acquire other automotive brands in the future, which could potentially benefit each other.

Furthermore, with over 2000 car dealerships worldwide, covering dozens of countries, even a few dealerships selling a single Rolls-Royce a year on average would significantly boost Rolls-Royce's sales.

After thinking for a moment, Thatcher said, "Rolls-Royce is a British luxury brand, but it's not as important as telecommunications. If you want to acquire it, you can negotiate directly with their company. As long as you both agree, I have no problem with that."
"If you can guarantee stable employment in Parliament, and given the relatively successful management of Mini after your acquisition, I think the chances of it passing are quite high."

The British automotive industry has declined, a fact known to any senior British official. The industry no longer creates many jobs and is still losing money, requiring government subsidies, so selling it is no big deal.
This is different from other major automotive powers such as Germany, France, Italy, and the United States.

Yang Wendong nodded and said, "Okay, I will send someone to negotiate with Rolls-Royce."

This is the benefit of diligently managing the company after acquiring Mini. Once the British government and other governments see this, they will be optimistic about Yang Wendong's other similar acquisitions.

Thatcher then asked, "What about the others?"

"Others?" Yang Wendong was taken aback. It seemed that the British government really wanted to get rid of a large amount of state-owned assets. This was somewhat similar to the situation in mainland China in the 90s. After thinking for a while, he asked, "British Airways, can I acquire it?"

Cathay Pacific in Hong Kong monopolizes the skies over Hong Kong. However, the Swire family is not a listed company, and the family holds more than 50% of the shares, making it a truly ironclad entity. Even with Yang Wendong's immense wealth, there is nothing he can do about it.

Although the aviation industry may not be as promising as the electronics or real estate industries in the future, it still offers high returns and has a significant international influence.

Every aircraft purchase can influence Boeing and Airbus; to exaggerate a bit, on a large scale, it can even influence the White House and the European Union.
Furthermore, with the rise of the Asian market and rapid global economic development, people's demand for air travel is also high, so acquiring an airline would be a good investment.

“An airline?” Thatcher thought for a moment and said, “We can sell you a certain number of shares, just like with the telecommunications company, but the management must be controlled by British capital, unless you become a British citizen, then we can consider it.”

“Okay, I understand,” Yang Wendong replied.

It seems that the Thatcher government's privatization in its early stages was not blind and unrestricted. At present, it is mainly about selling shares. Only industries like automobiles, which are not large-scale and do not involve national security, are not subject to foreign investment. This is because of the decline of the British automobile industry; otherwise, it would probably not be possible.

Thatcher then asked, "You can also invest in other sectors, such as steel, railways, water, electricity, and gas, just like in telecommunications and aviation. You can also participate in management in these sectors. I believe that the boards of directors of these companies would be happy to have a business genius like you on board."

“Okay.” Yang Wendong nodded and said, “I will arrange for someone to conduct an investigation.”

If he can't control it, then he actually doesn't have much interest.
However, it's hard to say. After all, historically, Li Ka-shing successfully controlled a lot of British infrastructure, which suggests that even if current policies don't allow it, they may change in the future.
Then I need to consider whether I need to invest some money now, otherwise it will become a lucrative opportunity once it is privatized, and it may be much more difficult for me to participate again.

Thatcher said, "Okay, I also hope that you can make more investments in the UK. In addition, I hope that you can increase your investment in the UK factories and increase employment here in the UK."

"I'll think about it." Yang Wendong did not directly refuse.
In the 80s, Britain's economy was already in a bad state. The two previous oil crises had had a significant impact, and the war with Argentina, while a victory in appearances, had cost Britain substantial money. Britain had not only spent a huge amount on military spending, but had also been forced to cede many overseas interests to the United States.

In addition to the large influx of overseas immigrants and the rampant spread of the liberal left, a huge financial crisis has been created.

Thatcher's strong push to privatize so many state-owned enterprises was essentially driven by fiscal problems. On the one hand, the government could not afford to support these loss-making state-owned enterprises, and on the other hand, it hoped that privatization would bring some funds to the country.
Yang Wendong is still interested in some British state-owned enterprises, but it is obviously impossible for him to invest in British industry again.

But I still had to save face, so I didn't refuse on the spot;
After the meeting with Thatcher, Yang Wendong and the others returned to the car and said to Fang Xianming, "Go and contact Langley Motors to inquire about Rolls-Royce. If Thatcher didn't object, then there's hope."

"Yes, Mr. Yang." Fang Xianming naturally already knew his boss's intentions; they had planned this before coming to England.

Yang Wendong then looked at his eldest son and said, "You should also follow along and learn more about the process of international mergers and acquisitions."

"Yes, Daddy," Yang Zhiwen replied.

PS: Please give me a monthly ticket
(End of this chapter)