Rebirth of England

Chapter 987 Joint Venture

"In this cooperation with Russia, Russian oil giants including Lukoil all require that the long-term sales agreements signed with us have a mechanism for flexible adjustment based on market prices..."

Barron didn't know what to say to Epery Singleton, CEO of United Energy Group...

After a while, he said calmly:

"That's good, that's what we wanted, but it's also good to make them feel like they have the upper hand."

Although it is no longer the BFT Fund that is cooperating with the Russian oil giants this time, the "crude oil bet" between the BFT Fund and the Russians is still impressive to them...

For example, Lukoil's president Vagit Alekperov still remembers the profits that the BFT Fund earned from Lukoil due to the soaring international crude oil prices. Although Lukoil only made less money from the price surge and did not suffer any losses, he still feels aggrieved about it.

This is also why the United Energy Group, in its cooperation with the Russian oil and gas giant, requires that a mechanism be added to adjust the oil and gas prices according to market changes...

They are really worried that history will repeat itself. If prices soar again after the contract is signed this time, it would not be such a pleasant thing.

In fact, they guessed right, but only half right, because the oil and gas prices this year will change greatly, but not rise, but fall - the annual oil and gas prices will fall by more than half, and these declines will be mainly concentrated in the second half of the year.

Of course, this is what happened in the original time and space. Often, Barron's actions in the investment market will take into account the impact on his industry. Therefore, Barron himself is still hesitating whether to control or suppress investment in the decline of crude oil and related commodity prices...

After all, the scale of cooperation with Russia and purchase of their oil and gas products is not small.

In addition, the United Energy Group and Kolo itself have considerable oil and gas extraction activities. The drop in oil and gas prices will inevitably have a profound impact on these industries.

However, the decline in oil and gas prices this year is also affected by many factors. The Fed’s withdrawal from quantitative easing has led to a stronger dollar, and the reduction in global demand has led to a decline in oil and gas prices.

Moreover, before this, there was a lot of capital that was long on oil and gas prices, and they began to reduce their positions on a large scale in the second half of this year, causing a panic decline...

Barron does not think they can completely fight this trend through the capital market...

In this case, the Russian oil and gas giants are more proactive in the negotiations on the purchase of the price adjustment mechanism...

Then the DS Group will have no psychological burden and can prepare to start intervening in this wave of sharp decline in oil and gas prices, which will in turn lead to a decline in commodity prices.

As for United Energy Group and Kolo Oil, they will also add corresponding futures short arbitrage based on their oil and gas production.

……

Throughout March, what attracted the most attention from the British people and the global pharmaceutical industry was that GlaxoSmithKline, the largest pharmaceutical company in the UK, announced the replacement of its chairman and CEO.

With Barron's increased investment in GlaxoSmithKline through his new fund European Wealth Fund this year, DS Group and its related capital now control a total of 25% of GlaxoSmithKline's shares. In addition to their influence, some other shareholders of GlaxoSmithKline also maintain close cooperative relations with DS Group.

As a result, they have taken control of the board of directors of GlaxoSmithKline, and announced in March that its chairman and CEO Andrew Witty would "retire" early. Emma Walmsley, who previously worked for L'Oréal Group under the GHL Group and currently manages GlaxoSmithKline's consumer healthcare business, will take over Andrew Witty's position and become the first female head of GlaxoSmithKline's history.

"My goal is to lead GlaxoSmithKline in its transformation. I hope to focus on research and development to bring better products to users..."

I have to say Emma Walmsley is very determined…

After taking over as the leader of GlaxoSmithKline, the first decision she made was to cooperate with Pfizer to merge the consumer healthcare businesses of both parties - it should be noted that before this, Emma Walmsley was the head of GlaxoSmithKline's consumer healthcare business.

"The merger of the two parties' consumer health care products businesses will save a lot of costs and occupy the first or second market share in the health care products business in all key regions, including the United States and China. This is beneficial to both GlaxoSmithKline and Pfizer..."

It can be said that this time Emma Walmsley chose Pfizer as her partner in the field of consumer health products, also taking into account the influence of GlaxoSmithKline's controlling shareholder, His Royal Highness the Duke, in Pfizer.

After all, in addition to controlling 25% of GlaxoSmithKline's shares, Barron also controls more than 20% of Pfizer's shares, which is also the driving force behind the cooperation between the two parties.

According to the negotiations between the two parties, after the merger of their businesses, the joint venture will be named GSK Consumer Healthcare, in which GSK owns 68% of its shares and Pfizer owns 32% of the shares. This integration involves multiple products of both parties, such as Sensodyne, Fenbid, Centrum, etc.

The joint venture will focus on integrating the businesses and expects to save £2015 million annually between the two businesses by 5. They also said that up to 25% of the cost savings will be reinvested in the business to support innovation and other growth opportunities.

At the same time, GlaxoSmithKline plans to divest the joint venture from the company within three years and list its consumer healthcare business in the UK and the US.

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GSK Consumer Healthcare's management will also be comprised primarily of GSK executives, and Pfizer will have the right to appoint three of the nine members of the joint venture's board of directors.

After the announcement of this cooperation between the two parties, the share prices of GlaxoSmithKline and Pfizer both rose slightly, which also shows that the market is still very optimistic about this cooperation between the two parties.

"GSK needs to maintain its strength in R&D, whether it's cancer drugs or vaccines..."

This is also what Barron said to Emma Walmsley the last time he met her.

At that time, Emma Walmsley wanted to establish a genomic research laboratory within the company, increase investment in oncology drugs, and focus on research and development.

Baron basically agreed with her strategy and specifically reminded that GlaxoSmithKline should not relax in its vaccine business.