The Magician’s Memorial - Chapter 449



Only Krnovel

449. An eye for an eye (4)

The conference room where Sharen is waiting.

As I entered, I saw him smiling brightly.

You could tell from his expression that the conversation with headquarters was going in a very good direction.

“I’m sorry for keeping you waiting so long.”

“No. I expected it to take at least an hour, but it didn’t even take 30 minutes.”

“To get to the point, I have decided to accept Chairman Kim’s proposal.”

I set three conditions.

1. Transfer of 5 ships.

2. Purchase of North Sea oil fields

3. Acceptance of ordered vessel

Except for condition number 1, all other conditions were beneficial to the Musk group.

Because it was a condition that could secure cash liquidity of as much as 10 billion dollars.

“We will sell all the ships ordered from the North Sea oil fields and Korean shipyards to Taewoo Group. But isn’t the price the problem?”

“To be honest, even $10 billion is an excessive amount. All the company executives opposed it, but it was a decision made at the cost of bloodshed for the development of the shipping industry. So, price negotiations are difficult.”

The amount was a whopping 10 billion dollars.

For the Maersk Group, which was experiencing cash flow problems due to the slump in the shipping industry, this amount was like rain in a drought.

That’s why price negotiation was impossible.

If they tried to negotiate, I was even thinking of throwing up this deal itself.

“10 billion dollars is enough for the sale of North Sea oil fields and ships on order. Instead of that, I would like to discuss the transfer of five ships.”

“Surely you won’t even make that much concession? Considering the price of five used ships, it’s not an excessive demand, is it?”

“Although they are used ships, they have absolutely no performance issues. It would be difficult to transfer five of these ships to Taewoo Group.”

Should I throw it away?

I was starting to get a little angry at the Musk Group’s unwillingness to make even this much concession.

Sensing that I was uncomfortable, Sharon quickly continued speaking.

“That doesn’t mean I won’t transfer it.”

“What do you want to do?”

“Didn’t you say that five ships are a symbol of trust? So I would like to transfer five ships to the ownership of the new shipping alliance we are creating.”

“So, the idea is to make it a ship jointly owned by the shipping alliance.”

The Musk group has been racking its brains.

The condition was to minimize damage while still seeing benefits.

Even for Taewoo Shipping, the conditions weren’t all that bad.

“Before talking about joint ownership, I think we should first clarify the shipping alliance.”

“Wouldn’t it be best for Taewoo Shipping and a consortium of small and medium-sized American shipping companies to join the existing 2M alliance? Do you want shipping companies from China, Taiwan, or Japan to join the alliance?”

There’s no way that’s true.

The biggest rivals of the Korean shipping industry were neighboring countries.

In particular, since the structure was to share the pie with Chinese and Taiwanese shipping companies, there was no desire to join the same alliance.

And on top of that, I was betrayed first.

They were the first to leave the shipping alliance that Hyunjin Shipping had previously joined as it collapsed.

“As you said, it would be sufficient if Taewoo Shipping and American shipping companies join the existing 2M alliance. But may I suggest one more thing?”

“I will listen to any suggestions.”

“I understand that Korean shipping companies have gone bankrupt due to the chicken game between the 2M alliance and other shipping alliances.”

“… … I apologize for that part. However, I never intended to target Korean shipping companies and engage in cutthroat competition. And if Taewoo Shipping wants it, I am willing to stop the cutthroat competition.”

The shipping companies’ deficits were by no means solely due to the recession.

It was the shipping companies that suffered greater losses due to the chicken game fought over good routes.

Shipping alliances have been pursuing dumping policies to restrain or bankrupt other shipping alliances.

“I think you misunderstood what I was saying. What I’m suggesting is that instead of stopping the bloodbath, why don’t we be a little more aggressive?”

“Are you saying we should lower the price further?”

“If we receive a $10 billion infusion from Taewoo Group, won’t the Musk Group also be financially sound? Taewoo Shipping is also very financially sound. How about using this opportunity to completely change the landscape of the shipping industry?”

Before the regression, the loser of the chicken game was the Korean shipping industry.

They lacked the capital to withstand the dumping competition, and with the pressure of charter fees that were ten times higher, competition itself was impossible.

But this time it was different.

Because the strong parent company called Taewoo Group is holding on.

If we could secure a solid supply of ships, we were confident that we could win the dumping competition with all foreign shipping companies.

“We’re fine, but can small and medium-sized American shipping companies handle it?”

“Would it be an alliance for nothing? We should help each other in times of trouble. If we help small and medium-sized shipping companies as an alliance, it is possible.”

“It is expected that a considerable amount of money will be involved.”

“Taewoo Shipping will support 70% of the loss. Please support the remaining 30% through the 2M Shipping Alliance. Isn’t that possible?”

Taewoo Group was the first to step forward, saying it would take enormous losses.

This was a condition that had to be accepted because if they did not accept the offer, they might be seen as rejecting American shipping companies.

“If Taewoo Group will shoulder 70%, the remaining 30% will be shouldered by the 2M alliance.”

“If you think of it as an investment to control the North American route, it is not a large amount. This chicken game will determine the winner of the North American route and the Asian route. That is why Taewoo Group decided to support 70% of the loss.”

“I pay tribute to Taewoo Group’s decision.”

In fact, there were absolutely no conditions under which Taewoo Group would suffer a loss.

Most of the U.S. shipping companies were acquired through fintech banks and other financial institutions.

In other words, most of the American shipping companies were mine.

If my shipping company suffered losses, it was only natural that I should compensate for them.

However, since 30% of the loss was passed on to Musk and the 2M alliance, it was a condition in which Taewoo Group benefited entirely.

It was Sheren who didn’t know that fact.

I was grateful that Taewoo Group was willing to take on such a huge loss.

This was possible because they didn’t know that it was the 2M alliance and not the Taewoo Group that was suffering the loss.

“We need to move quickly, even if it means taking a loss. We need to show a good image before the U.S. government starts regulating the shipping industry, so we can avoid regulation and secure good routes.”

“I feel bad because it seems like only Taewoo Group is bearing the loss. I will personally step forward and try to persuade the headquarters to transfer two of the five ships to Taewoo Group.”

As expected, in negotiations, you have to pretend to be sick to get at least one more thing.

Even though he wasn’t asked to, Sherren decided to hand over two ships to Taewoo Group.

“If we were to take over the ship in the current situation, the deficit could increase, but Taewoo Group is prepared to bear all the losses.”

“I feel like we have a really strong ally. I will do my best to close the deal this week.”

“I will send the Taewoo Shipping team to Denmark. Wouldn’t that be faster in concluding the contract?”

“Thank you very much. It seems that the 2M shipping alliance will soon monopolize the shipping industry. Ah! I guess we shouldn’t call it the 2M alliance anymore. Do you have a name in mind?”

The history of the 2M shipping alliance was now over.

Since a new shipping alliance has been created with Taewoo Shipping at its center, shouldn’t Taewoo Shipping’s name be at the forefront?

“How about the TAM alliance? The T of Taewoo Group, the A of America, and the M of the existing 2M alliance. Wouldn’t a simple name be easier to pronounce than a fancy name?”

“Okay. I’ll move right now so that the TAM alliance can be formed as soon as possible.”

It was Sheren who smiled and asked to shake hands.

I shook hands with a solemn expression.

It was an act to show that Taewoo Group was serious about the shipping industry, and only by acting like this could they lead the detailed negotiations in a favorable direction.

***

After finishing the negotiation, we returned to the hotel.

David and Diamond had already arrived at the hotel and were waiting for me.

“Boss! Judging by your expression, the negotiation must have gone well.”

“We got the North Sea oil fields and ships we wanted.”

“They’re giving me $10 billion, so of course I have to get that much.”

“I don’t understand why the chairman is negotiating like this. No matter how much I analyze the reason for spending $10 billion to buy North Sea oil fields and ships, I can’t find an answer.”

David, who just loves it.

In contrast, Diamond was analyzing this negotiation.

And he had a serious expression on his face, as if the analysis results weren’t very good.

“Are you not happy with the North Sea oil fields? Or is it the fact that you bought the ships that is the problem?”

“Both. First, let’s look at the North Sea oil field. Why would the Musk Group want to sell it? Europe is pursuing a carbon neutral policy, and oil prices are not rising, so I think they sold it because they judged it to be worthless.”

The location of the North Sea oil fields was Europe.

Being located between the UK and Denmark, it was only natural that the European market would become its biggest customer.

However, Europe was pursuing policies to promote the use of environmentally friendly energy, so it could have decided that oil fields were no longer valuable.

Plus there was the shale revolution.

With shale gas having vastly increased oil supplies, many experts predicted that developing new oil fields would only result in losses.

“Europe now receives most of its energy from Russia.”

“They are getting it cheaply through pipelines, so the value of North Sea oil fields has fallen even further.”

“But how long will we be able to get energy from Russia? If Russia were to block the pipeline, the whole of Europe would experience an energy crisis. By then, the value of North Sea oil fields would be ten times higher than it is now.”

“Why would Russia block the pipeline? Why would it give up a hugely profitable business?”

Under normal circumstances, that wouldn’t happen.

But Russia was still a country that dreamed of territorial expansion.

If something like the invasion of Ukraine were to happen, Europe would be morally unable to receive energy supplies from Russia via pipelines.

“Russia invaded Crimea. Who can guarantee that it won’t happen again?”

“Do you think Russia is likely to start a large-scale war?”

“Russia is the only country that could do that. If that happens, the North Sea oil fields could become Europe’s lifeline.”

“If it goes as the chairman says, the North Sea oil fields will end up functioning as gold mines rather than oil fields.”

It wasn’t just the North Sea oil fields.

Expanding the shipping company by acquiring ships was also a choice made with an eye on the future.

When the Corona era came, we were able to recover the deficit of the past 10 years within a year.

After three years, we were able to record higher operating profits than we had in the previous 50 years.

“I always agree with the boss’s opinion. When has the boss ever invested in something and lost it?”

“I’m not against it either. I just didn’t understand it, and now I understand why you made that choice.”

“So why are you questioning the boss’s opinion? If you just follow it, you won’t have to think about it. Oh! And boss, there’s a ceremony to mark the completion of the new Apple headquarters tomorrow. Shouldn’t you go to California right now to attend?”

Apple’s new headquarters completion ceremony.

It was an event I had to attend, of course.

Because it was Apple’s largest shareholder and because Taewoo Construction had put all its efforts into building the new building.