A Study On The Effect Of Midea Group’s Cross-Border Merger And Acquisition Of Toshiba Household Appliances

With the acceleration of economic globalization and the improvement of enterprises’marketization and internationalization,strategic overseas mergers and acquisitions have become a new trend of foreign direct investment of domestic enterprises.At present,the golden growth period of household appliances industry driven by various subsidies policies has come to an end.Domestic household appliances manufacturing enterprises have entered a critical period of technology and brand upgrading.It has become an important choice for domestic leading household appliances manufacturing enterprises to transfer to the upstream of value chain with the help of international high-end technology and brand strength.In this context,through cross-border mergers and acquisitions,home appliances manufacturers such as Midea Group and Haier accelerate the implementation of the "going out" strategy,expecting to exchange capital for technology,channels and brand awareness,so as to achieve high-quality development of enterprises.Cross-border M&A is not only an important opportunity for the internationalization of enterprises,but also a great challenge hidden in the process.Drawing lessons from the successful experience of the former in cross-border M&A and controlling various risks in cross-border M&A activities are of great practical significance to domestic appliance manufacturing enterprises.This paper summarizes the relevant concepts and theories of transnational mergers and acquisitions,combined with the current background of home appliances industry mergers and acquisitions,in-depth analysis of the effect of mergers and acquisitions of Toshiba household appliances by Midea Group.Using qualitative analysis method to study the effectiveness and potential problems of transnational mergers and acquisitions of Toshiba household appliances by Midea Group,it is found that the mergers and acquisitions have improved the performance of Midea Group as a whole,but there are also potential problems such as single financing channel and structure,increased debt-paying pressure by cash payment,difficult integration of human resources,and reduced brand value of Toshiba household appliances,which affect the effect of mergers and acquisitions.In addition,comparative analysis,financial performance analysis and non-financial performance analysis are used to quantitatively analyze the M&A activities,which further confirms the previous findings.In view of the problems found,the countermeasures and Enlightenments for improving the effect of M&A are as follows:when financing M&A,enterprises should consider their own affordability comprehensively,choose diversified financing methods,formulate targeted financing schemes and disperse financing risks,enrich payment methods and use various payment means comprehensively to reduce the pressure and financial risks of M&A,and strengthen communication with employees.To formulate a stable human resources policy,establish a management system that can be adapted and recognized by both sides,retain key talents,and enhance the brand value of Toshiba household appliances with the help of its own brand advantages.It is hoped that this study can provide some experience for future transnational mergers and acquisitions and internationalization of household appliances manufacturing enterprises.