Chapter 2046

Jasmine decided to adopt a joint venture approach, similar to the model used by automobile companies, to introduce Nippon Steel's cutting-edge technology to the Chinese steel market. FAW-Volkswagen, GAC-Honda, and GM-Ford all successfully employed this model, achieving impressive sales results after two or three decades of operation.

Nippon Steel was also interested in this cooperative venture. The Moore family's resources—financial strength, land holdings, and steel industry experience—made them an attractive potential partner. The two parties quickly reached an initial agreement, leaving only the details of the cooperation to be negotiated.

Jasmine proposed a 51/49% share split, with the Moore family holding 51%. Nippon Steel countered with a 51/49% split in their favor. This seemingly small difference was crucial, as the 51% shareholder would hold controlling interest and ultimate decision-making power. Granting Nippon Steel this control would significantly diminish the Moore family's influence.

Negotiations stalled over this point. Neither side was willing to compromise. Jasmine addressed Nippon Steel's top management: "Gentlemen, our proposed cooperation mirrors the established model in the automotive industry. In China, joint ventures between local and foreign automakers typically follow a 51/49% structure, with the local company holding 51%. Since this enterprise will be established in our country, this should be our share. I hope your company understands."

Nippon Steel's lead negotiator was Vice Chairman Hashimoto Kensen, a member of the company's core management team. At forty years old, his rapid rise within Japan's seniority-focused corporate culture indicated significant influence.

Hashimoto looked at Jasmine and smiled. "Miss Moore, I understand the automotive industry's cooperative model, but it's not appropriate for this venture with New Japan Steel."

Jasmine responded calmly, "Mr. Hashimoto, why is it unsuitable? I'd appreciate your explanation."

Hashimoto smiled, then became serious. "The automotive industry has numerous major players—Toyota, Honda, and Nissan in Japan; BMW, Mercedes-Benz, Audi, and Volkswagen in Germany; General Motors, Ford, and Chrysler in the United States; and numerous others in Italy. This intense competition often leads to price wars, particularly in markets like China However, the steel industry has far fewer major players. Only a few companies dominate the global top-ten list, with even fewer possessing core special steel technologies. In Japan, there's only Nippon Steel. As the Chinese saying goes, 'Rarity increases value.' Miss Moore, it's reasonable for you to offer more to secure a partner as unique as Nippon Steel."

Jasmine hesitated, then suggested, "Mr. Hashimoto, I cannot concede on the equity share. The Moore Group must hold 51%. However, as compensation, we can offer Nippon Steel a preferential profit-sharing arrangement: Nippon Steel will receive 51% of all net profits generated by the venture. What are your thoughts?"

Hashimoto shook his head firmly. "Miss Moore, we will not compromise on equity. If we were willing to concede, we would have already partnered with other Chinese steel companies. This opportunity wouldn't have arisen."