She chose to pursue a joint venture strategy, simr to what automobilepanies have done, to integrate the advanced technology of Nippon Steel into the steel industry.
FAW-Volkswagen, GAC-Honda, and GM Ford have all embraced this joint venture concept. After 20 to 30 years of coborative development, thesepanies have achieved impressive sales results.
Nippon Steel is also eager to explore this partnership. The Moore family brings valuable resources,nd, and significant experience in the steel sector, making them an excellent potential ally for Nippon Steel.<fn6972> For original chapters go to FιndＮovel</fn6972>
The two parties quickly foundmon ground, and they moved on to discuss and outline the specifics of their coboration.
Jasmine proposed that the Moore family would retain 51% of the shares, while Nippon Steel would hold 49%. However, Nippon Steel’s preference was to have 51% ownership, leaving the Moore family with 49%.<h3 style="background-color:DodgerBlue">
Though the difference in percentage may seem minor, it significantly impacts who controls thepany.
Having 51% ownership makes one thergest shareholder, granting them the ultimate authority to make key decisions regarding thepany’s operations.
If control were to shift to Nippon Steel, the Moore family would lose their influence in this partnership.
During negotiations, both sides engaged in a tug-of-war over this crucial point, with neither party willing to yield.
Jasmine addressed Nippon Steel’s top executives: “Gentlemen, for our coboration, we should look to the automotive industry’s established practices. In our country, local automotivepanies typically retain 51% ownership when entering joint ventures with overseas firms. Since the enterprise will be based here, it’s only fair that we maintain majority ownership. I hope yourpany understands this point!”
Hashimoto Kensen, the vice chairman of Nippon Steel and a key figure in thepany’s management, was in charge of negotiations with Jasmine.
At 40 years old, Hashimoto had risen to core management at a rtively young age, reflecting his strong position in Japan’s seniority-focused society.
He looked at Jasmine with a slight smile and replied, “Miss Moore, I understand the cooperative model you’re referencing from the automotive sector, but that framework may not be suitable for the partnership between New Japan Railway and yourpany.”
Jasmine, maintaining herposure, responded, “Mr. Hashimoto, could you rify why this model isn’t appropriate for our coboration? I’m eager to understand your perspective.”
Hashimoto began by exining, “Firstly, the automobile industry has many leading enterprises. In Japan alone, there are Toyota, Honda, and Nissan; in Germany, we have BMW, Mercedes-Benz, Audi, and Volkswagen; the United States has General Motors, Ford, and Chrysler; and Italy boasts Ferrari, Lamborghini, and Maserati. With so manypetitors, undercutting each other’s bids for the Chinese market ismon.”
He then shifted to a more serious tone: “However, in the steel industry, there are only a handful of major yers. The world’s top ten steelpanies include only three or four that truly excel in special steel technology. In Japan, Nippon Steel stands alone in this regard. As the saying goes, ‘Rare is precious,’ and it’s understandable for you, Miss Moore, to offer more to secure a partnership with such a unique entity as New Japan Railway!”
After some hesitation, Jasmine firmly stated, “Mr. Hashimoto, as for the share distribution, I cannot concede any further. The Moore Group must hold 51% of the shares in this partnership. However, to amodate Nippon Steel, we can ensure that you receive arger share of the profits generated from our coboration—specifically, 51% of all profits. What are your thoughts on that?”
Hashimoto shook his head decisively, saying, “Miss Moore, we will notpromise on the equity issue. If we were open to negotiating this aspect, we would have already established deeper partnerships with other steelpanies in your country. So, why would we still be here today?”