RE:RE:RE:RE:RE:CATL NewsDufhaste wrote:
I also asked myself what it means for their strategic nlc invest. So far the market doesn't seem to assess this development as a negative for Neo...let's wait and see. A lot should happen until the end of the year.
I am not worried that CATL enter the market. for $377M the buy is the great deal. They may form JV or hire experience mine development management. Tesla demostrated that vertical integration is not as dead as it was believed.
For me the deal iteslf is a bit strange. One Chinese company overbidding another (and they do not compete as freely as say VW and BMW) and difference is mere $25M. Furthermore, CATL will pay $10M on behalf of ML as withdrawl penalty. Mere $15M difference while Canfeng just announced a whooping 1.3B investment in batteries. After that, Canfeng put tail behind the legs and run away....no counter bidding (say $400M still would be a fanatastic deal for them), no protests.
It looks like CATL manager called to Communist Party bureau and "sort it out" with better connection than Canfeng ("hey, it is my territory, get your $10M and go away!").
We will never know what actually happen, but I do not believe it was a bidding war.