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German Corporations Buying Major U.S. Businesses

Dave Emory’s entire life­time of work is avail­able on a flash drive that can be obtained here. [1] The new drive is a 32-gigabyte drive that is current as of the programs and articles posted by 10/02/2014. The new drive (available for a tax-deductible contribution of $65.00 or more) contains FTR #812 [2].  (The previous flash drive was current through the end of May of 2012 and contained FTR #748 [3].)

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[7]

Martin Bormann

[8]

I.G. Farben logo

COMMENT: German corporations are ramping up purchases of key American companies. In this regard, one must always bear in mind the control of corporate Germany by the Bormann capital network [9]. (A working understanding of Paul Manning’s [10] text–excerpted below–is fundamental to proper understanding and use of this website.)

Bayer, Siemens and Merck are discussed at length and detail in the Manning text.

Corporate Germany is effectively controlled by the Bormann organization, the economic component of a Third Reich gone underground.

Fundamental here, as well, is the work of Dorothy Thompson, who (writing of the Third Reich’s plans for global domination), related that the masters of German industry, finance and politics saw economic control leading automatically to political control.

The [Friecrich] Listian model was put into effect by the Third Reich, as can be gleaned by read­ing Ms. Thompson’s analy­sis of Germany’s plans for world dom­i­nance by a cen­tral­ized Euro­pean eco­nomic union. Ms. Thomp­son was writ­ing in The New York Her­ald Tri­bune [11] on May 31, 1940! 

Foreign ownership of major corporations in Germany is severely restricted.

“Cash-Stuffed German Companies on a Global Buying Spree” by David Gelles; The New York Times; 9/22/2014. [12]

Germany’s businesses have been the rare bright spot in the European economy in recent years, generating jobs and profits even as neighboring countries face persistent unemployment.

Now, many of the biggest German companies are capitalizing on their strength and striking big deals for overseas competitors.

In recent days, two multibillion-dollar deals were announced. On Sunday, the German engineering conglomerate Siemens announced a $7.6 billion acquisition of the Dresser-Rand Group, the United States oil products company. And on Monday morning, Merck of Germany, the chemical and drug giant, said it would pay $17 billion for Sigma-Aldrich, an American life sciences company. (The German Merck is not affiliated with the United States drug maker Merck & Company.)

“The overall confidence that is still prevalent here is a big factor,” said Tim Brandi, head of corporate practice at the law firm Hogan Lovells in Frankfurt. “It’s been a big rush in just a week’s time.”

Those two acquisitions lifted German acquisitions to more than $105 billion for the year, the most since 2007 and the third-highest total in 15 years, according to Thomson Reuters.

“It’s an optimal time to look for big acquisitions, especially with the financing market open and German corporations having strong balance sheets,” Dirk Albersmeier, head of German mergers and acquisitions at JPMorgan Chase in Frankfurt, said in an email. “So C.E.O.s are asking, ‘Why not do it now?’ ”

Merck will pay $140 a share in cash, or $17 billion, for Sigma-Aldrich, representing a 37 percent premium on the company’s closing price from Friday. The deal will expand Merck’s worldwide presence and represents the latest bet on life sciences by a German company.

The deal is expected to increase Merck’s presence in North America, give it added exposure to markets in Asia and increase its product offerings. The Americas accounted for about half of Sigma-Aldrich’s sales in 2013.

The combined life sciences business, if the merger had happened last year, would have had pro forma sales of about 4.7 billion euros (about $6 billion). Laboratory research and academia would have accounted for about half of the combined division’s sales.

Sigma-Aldrich, based in St. Louis, produces more than 230,000 chemicals and other products that are used in laboratory research and a variety of industrial and commercial sectors, including the pharmaceutical and food and beverage industries. It posted sales of $2.7 billion in 2013 and employs about 9,000 people in 37 countries.

Merck, which operates under the EMD brand in the United States and Canada, manufactures products for the pharmaceutical and chemical sectors. It posted revenue of about €11.1 billion in 2013 and employs about 39,000 people in 66 countries.

For Siemens, acquiring the Dresser-Rand Group signals an even bigger push into the booming American sector. Siemens is trying to position itself as a player in the shale oil boom, which has significantly bolstered oil and gas production in the United States and is likely to lead to a sharp increase in spending on the sort of heavy oil and gas industry compressors, turbines and other equipment that Dresser supplies, analysts say.

The price tag was seen as high, especially considering that orders for Dresser-Rand’s oil and gas products and services slumped last year. But Siemens is betting that, in the long term, Dresser-Rand will strengthen its ability to cash in on unconventional drilling techniques like hydraulic fracturing, or fracking, that have made the United States what Joe Kaeser, the Siemens chief executive, has called “the place to be for oil and gas.”

Julien Laurent, an oil and gas analyst at Natixis in Paris, said on Monday, “They are reinforcing their oil and gas business and focusing more on the U.S. market.”

The acquisition of Dresser-Rand also allows Mr. Kaeser to claim a victory after a recent loss to General Electric, Siemens’s longtime rival. Over the summer, Siemens lost out to G.E. for the energy assets being sold by the French industrial group Alstom.

But the merger mania sweeping German businesses is not isolated to particular industries. In addition to the drug and engineering deals, German technology companies and auto parts makers have been active, too.

Last week, the big enterprise software maker SAP announced it would acquire Concur Technologies of Seattle for $8.3 billion. Days before that, ZF Friedrichshafen said it would pay more than $13 billion for TRW Automotive Holdings, a car parts maker.

And Merck’s deal for Sigma-Aldrich is just the latest bet on the life sciences sector by a German company. On Thursday, the German drug maker Bayer announced that it was planning to spin off its polymer business into a new, publicly listed company as it focuses on health care and life sciences.

In May, Bayer agreed to pay $14.2 billion for Merck & Company’s consumer care business, acquiring popular brands like the allergy medicine Claritin and Coppertone sunscreen. . . . .

Mar­tin Bor­mann: Nazi in Exile; Paul Man­ning; Copy­right 1981 [HC]; Lyle Stu­art Inc.; ISBN 0–8184-0309–8; p. 205. [13]

. . . . The [FBI] file revealed that he had been banking under his own name from his office in Germany in Deutsche Bank of Buenos Aires since 1941; that he held one joint account with the Argentinian dictator Juan Peron, and on August 4, 5 and 14, 1967, had written checks on demand accounts in first National City Bank (Overseas Division) of New York, The Chase Manhattan Bank, and Manufacturers Hanover Trust Co., all cleared through Deutsche Bank of Buenos Aires. . . .

 Germany Plots with the Kremlin; T.H. Tetens; Henry Schuman [HC]; 1953; p. 92. [14]

. . . . The Ger­mans have a clear plan of what they intend to do in case of vic­tory. I believe that I know the essen­tial details of that plan. I have heard it from a suf­fi­cient num­ber of impor­tant Ger­mans to credit its authen­tic­ity . . . Germany’s plan is to make a cus­toms union of Europe, with com­plete finan­cial and eco­nomic con­trol cen­tered in Berlin. This will cre­ate at once the largest free trade area and the largest planned econ­omy in the world. In West­ern Europe alone . . . there will be an eco­nomic unity of 400 mil­lion per­sons . . . To these will be added the resources of the British, French, Dutch and Bel­gian empires. These will be pooled in the name of Europa Germanica . . .

“The Ger­mans count upon polit­i­cal power fol­low­ing eco­nomic power, and not vice versa. Ter­ri­to­r­ial changes do not con­cern them, because there will be no ‘France’ or ‘Eng­land,’ except as lan­guage groups. Lit­tle imme­di­ate con­cern is felt regard­ing polit­i­cal orga­ni­za­tions . . . . No nation will have the con­trol of its own finan­cial or eco­nomic sys­tem or of its cus­toms. [Italics are mine–D.E.] The Naz­i­fi­ca­tion of all coun­tries will be accom­plished by eco­nomic pres­sure. In all coun­tries, con­tacts have been estab­lished long ago with sym­pa­thetic busi­ness­men and indus­tri­al­ists . . . . As far as the United States is con­cerned, the plan­ners of the World Ger­man­ica laugh off the idea of any armed inva­sion. They say that it will be com­pletely unnec­es­sary to take mil­i­tary action against the United States to force it to play ball with this sys­tem. . . . Here, as in every other coun­try, they have estab­lished rela­tions with numer­ous indus­tries and com­mer­cial orga­ni­za­tions, to whom they will offer advan­tages in co-operation with Germany. . . .