• Hi Guest! Forum rules have been updated. All users please read here.

Merger in the Chinese Aviation Industry Sector


ACCESS: Top Secret
Staff member
Top Contributor
Senior Member
Jan 2, 2006
Reaction score
Just found :eek: :eek: :eek: via 'ladioussupp' (SDF)

;282462 said:
ChengFei - JiCheng restructured to buy 100% of SAC, CAC, and Hongdu group.



... and via 'A.Man' (SDF):

Chengdu Aircraft Industrial Group Purchases 100% Shares of Shengyang Aircraft Company, 100% Shares of Chengdu Aircraft Company and 100% Shares of Hongdu Aircraft Company







Auto Translation:

Integrated into the fly (002,190) 18 evening announcement, the company intends to approach the issue of shares to buy assets taken by the integration into the flight directed issue of shares to the aircraft industry, Huarong Company and Hongdu Group assets into three parties, the purchase of 100% of the Group SAC Option to fly 100% to 100% equity stake Hongdu Group and Technology, the estimated value of the underlying assets of 15.847 billion yuan. Upon completion of the reorganization, the main business will be integrated into the fly to change the fighters, air-surface missiles and other research-based. Notice that the integration into the flight of this major asset restructuring to be undertaken by the issue of shares to buy assets from the integration into the flight the aircraft industry, Huarong and three Hongdu Group assets into the party directed issue of shares, the purchase of 100% equity interest in Shenyang Aircraft Group , to fly a 100% equity stake to 100% Hongdu Group and Technology. Meanwhile, this restructuring will be implemented supporting financing Serve fly integration intends to AVIC, Huarong, China Aviation aircraft, AMES, AVIC investment AVICHINA, AVIC Avionics, CATIC, Hang Sheng investment and soaring investment in non- public offering of shares to raise cash, the total financing package does not exceed 25% of the total transaction time. As part of this restructuring of the underlying SAC Group, fly into three groups and Hongdu technology assets estimated value of up to 15.847 billion yuan. After the completion of the transaction, AVIC and its affiliated companies will together hold approximately 141,370.80 million shares, representing approximately 87.37% of total issued share capital, while in the aircraft industry remains the controlling shareholder and actual controller. Announcements, Shenyang Aircraft Group in 2012 and 2013 net profit was 370 million yuan and 290 million yuan, Cheng Fei Group in 2012 and 2013 net profit was 250 million yuan and 370 million yuan, and as a platform for listed companies Integrated fly past two years, net profit attributable to shareholders was 54.45 million yuan, respectively, and 45.35 million yuan. The company said that after the second injection of assets, asset size of listed companies, profitability will be significantly improved; company to integrate AVIC defense equipment segment strong technical resources, market resources and excellent human resources, through a rich product types, extension industrial chain, create synergy, enhance the company's ability to resist risks, to further enhance the company's capacity for sustainable development and competitiveness. Company shares resume trading from the time May 19, 2014 opening.

Sorry for my stupidity if I misunderstand ... but that sounds like a take-over, merger or the birth of an Aerospace-giant !!!

While such a giant may be better off in the international market in the short term, it begs the question of long term monopoly fears for domestic, especially military related needs and I admit I'm really not sure if I understand this merger correctly but it reminds me heavily to the merger in the US Aviation sector some time ago, when Rockwell, McDonnell Douglas, Fairchild, General Dynamics all dissapeared and were simply merged into Lockheed Martin or Boeing ... with all the result we see now with the F-35, C-46, and several other projects !

As such I have a similar fear if this reorganisation is indeed a "merger".



Senior Member
Jun 3, 2011
Reaction score
Deino said:
with all the result we see now with the F-35

The F-35 was the result of a competition between 3 teams. Even if there would have been no mergers there would still be one winner (like GD was with the F-16 for example) and a bunch of starving losers. The reason they merged in the first place is there wasn't enough work available to support that many manufacturers. The US still has 3 primes that can build fighter aircraft (Boeing, NG, and LM), 2 that can build bombers (NG and Boeing). You don't see the monopolies you do in France (Dassault) the UK (EADS/Airbus) and Sweden (SAAB).

Similar threads