Case Analysis Of The Qingdao Haier Acquisition Of GEA

Nowadays,Merger and Acquisition(M&A)is used more and more by enterprises as an important economic instrument.This thesis chooses Qingdao Haier Co.,Ltd.as the object of study because it has implemented multiple acquisitions since its establishment.This thesis studies the synergies between Haier’s M&A and its strategies in order to draw conclusions about how to choose the object of acquisition and give a little reference to other companies who want to implement mergers and acquisitions.This thesis begins by combing the development of China’s household electrical appliance industry and the synergies between Haier’s M&A and its strategies.Based on the business background and Haier’s own history of M&A,this thesis makes detailed analysis of the Qingdao Haier acquisition of GEA from the views of strategy,valuation,stock price performance and synergy.Using the currently available public data,this thesis comes to the conclusion that the market is not optimistic about this acquisition in the short term but optimistic in the longer term.Besides,financial synergies are not obvious.Finally,taking the historical M&A into consideration,this thesis proposes the recommendation that enterprises are supposed to choose the object of M&A based on their own strategies.The enterprises had better pay attention to the rationality of the premium when pay for the M&A as well.