|Shanghai Electric has expressed |
interest in buying Manroland sheetfed
Manroland filed for insolvency last month in one of the largest business failures in Germany for the past two years. While bankruptcy differs from insolvency (click here for explanation), the two are sometimes used synonymously to mean one thing: the company cannot pay its bills and is in desperate need of bailout. Since the filing, Manroland has desperately been seeking revenue and government support to keep operations up and running and has had some success.
Many analysts believe that Shanghai Electric is looking to be the largest press manufacturer in the world. To achieve this, it is following a pattern that has played out a number of times for the Chinese giant. Not long ago, the company purchased Goss International, a chief competitor of Manroland. Goss had itself spent time in bankruptcy protection before being bought out by Shanghai Electric. Sheetfed printer Akiyama was also in a similar situation and was bought out by the Chinese giant. Acquiring even part of Manroland would give Shanghai Electric a real competitive advantage.
|German press manufacturer KBA is in a |
good position to profit from such an acquisition
Cash Is King
In these tough economic times, cash will likely be the winner as more credit is an unlikely solution. Will it be Chinese Shanhai Electric Company or German KBA? Will it be someone else? Stand by as the drama unfolds.
UPDATE: See Possehl To Buy Manroland Web Division