News from the Chinese owners of Eterna and Corum …
To those Swiss watch company, China Haidian Group (stock code:00256) is not an unfamiliar name. The explosive news that Haidian Group totally took over Corum this year still lingers in our ears. On 25th September, Haidian Group sold 51% stock of its subsidiary Ruihuang to another company in Beijing by 253 million CNY (about 40 million CHF).
Ruihuang is based in the west of China, mainly acting as watches and precise instruments distribution agent. It has about 40 agencies in western China. The strange part is that the buyer company is not a watch related company but an investment company.
Haidian Group was funded in 1991 in Hong Kong. Before 2005, the primary service of the group was real estate and enameled wire production. In 2005, the group took over a Chinese watch brand EBOHR, in its way to become a watch company. Two years later, it paid 2.62 billion CNY (about 415 million CHF) to take over another Chinese watch brand, Rossini. Meanwhile, Haidian funded a precious metal processing factory PAMA in Shenzhen China, for the production of watch cases and accessory.
However, its journey to become a watch company did not stop here. In 2011, Haidian Group spent 34 million CHF buying a Swiss watch brand with more than 150 years history, which is known as powerful movement designer, Eterna, form an automobile company Porsche. Further, it purchased Porsche Design simultaneously. In the same year, not only Eterna in Switzerland was bought, a movement factory called Wuyang in Guangzhou China was also bought by Haidian.
Haidian Group’s ambition of turning itself into a watch company is confirmedly and prodigally. When everyone thought it would cease increasingly taking over watch brand and factory, starting its management, the group surprisingly buys another magical Swiss brand, Corum. The price shocked us once again: 86 million CHF.
After this deal, Haidian now owns a complete range of watch production factory, including cases, movements, parts, straps and accessory, covering a wide price range. It is becoming the Swatch Group in China. Who can tell which watch company around the world will be devoured by this rich group next time?