Research On The Integration Of Overseas Mergers And Acquisitions Of Chinese Household Appliance Enterprises

Since 2016,China’s home appliance market has become saturated,and more and more home appliance companies have joined overseas mergers and acquisitions,such as Haier’s acquisition of GEA,Midea’s acquisition of Toshiba home appliances,and KUKA,etc..In 2018,the "Interim Review Report on the M&A Market of Chinese Enterprises" published by Price Waterhouse Coopers shows that Chinese companies’overseas M&A targets have shifted from resource-oriented(raw materials,energy,etc.)to strategic asset orientation(technology,brand,etc.).In the face of technology and market disadvantages,Chinese home appliance companies are also trying to realize their technological transformation and upgrade through overseas mergers and acquisitions and acquire new markets to accelerate the process of internationalization.However,the effect of overseas M&A is still not satisfactory.53%of M&A transactions failed to fully realize post-merger integration,resulting in M&A transactions not achieving the expected results.Especially for home appliance companies,can they really revitalize these assets when they buy high-priced "sunset" industries that are divested by developed countries?What integration measures should be taken after the merger to achieve their target?Exploring this issue will help to provide reference for overseas M&A of China’s home appliance enterprises from the perspective of theory and practice.based on the theory of synergy,the theory of technological innovation and the theory of internationalization of late-stage enterprises,This paper selects the perspective of M&A motivation,explores the current situation,problems and causes of overseas M&A integration of Chinese household electrical appliance enterprises under different motivations,and proposes countermeasures and suggestions:First,increase investment in research and development and promote technological synergy;Second,establish a diverse talent incentive mechanism;Third,promote adequate communication between the parties to the merger;Fourth,promote localization of marketing;Fifth,Regard cultural integration as an entry point for technology and talent integration.Finally,this paper selects the case of Qingdao Haier’s acquisition of GEA,as an application and an example of the integration issues and optimization suggestions of the home appliance industry proposed in the previous article.