Economic observation Network reporter Rao XianjunOn July 6, BEKE.NASDAQ announced that it had reached an agreement with Shengdu Home Decoration to acquire a 100% stake in Shengdu for a total consideration of no more than 8 billion yuan, and to advance the acquisition arrangement in stages in accordance with customary delivery conditions, including regulatory approval.

According to reports, in accordance with the relevant legal requirements, the transaction also needs regulatory approval and confirmation, and the transaction is expected to be completed in the first half of 2022.

This is the first major M & A move made by the shell after continuous exploration of the home decoration industry. In 2019, the shell became a low-key brand "quilt home decoration", and officially announced the "quilt" home decoration market in 2020.

According to reports, 2021, shell on the home improvement market digital iteration has begun to see results, its self-developed BIM system version 1.0 has been fully online, to achieve a comprehensive digital decoration design links, including the system automatically output drawings, quotations, digital bill of materials (BOM).

Shell's acquisition of Shengdu home decoration is a well-known decoration enterprise in East China. According to the public information on the official website of Shengdu Home Decoration, Shengdu was founded in 2002 and is headquartered in Hangzhou. Its main business is the family decoration service of the whole assembly model, covering 7 provinces / municipalities directly under the Central Government, with a total contract value of 3.3 billion yuan in 2019.

In addition, Shengdu Home Decoration formulated the "third five-year Plan" in 2020: the performance exceeded 10 billion in 2024, the performance exceeded 30 billion in 2029, and it became the infrastructure of China's home decoration industry in 2034.

Peng Yongdong, chairman and CEO of Shell search, said: "We are very pleased that Sundu has joined the shell and look forward to the strong synergy of this acquisition. In 2019, shell explores the home decoration industry with the brand-new sub-brand of quilt, and believes that the development of the industry needs quality service, quality service and scientific management, which is the goal that shell and Shengdu firmly believe in and strive for. Through the 20 years of operation experience accumulated by Lianjia and Shell, we have a deep understanding of how to establish new and higher standards in the existing industry, and the acquisition of Shengdu will strengthen the shell's ability to provide better residential services. to meet the changing needs of our customers. "

Yan Weiyang, founder and chairman of Shengdu, said: "I am very glad that Shengdu can become a member of the shell family." Shengdu is a practitioner of Chinese home decoration industry. Through 19 years of deep ploughing, Shengdu has grown into a well-known decoration enterprise in East China. Shengdu very much agrees with the strategic vision of shell in the large residential industry, and the two sides are highly consistent in corporate mission and values. We firmly believe that through this cooperation, Shengdu will join hands with Shell to achieve strategic coordination between the upstream and downstream of the industry, so as to provide Chinese consumers with a better place to live. "

Peng Yongdong said that the shell and Shengdu will first "do vertically" to achieve the industrial iteration of the home decoration industry, so as to "climb the second mountain." He believes that vertical is to build a set of industry standards, horizontal is to promote the progress of the industry in a deeper level, vertical and then horizontal may not be the only path of industrial Internet, but shells have been practiced and believed in the path.