A Case Study On The Cross-border Merger Between Midea And KUKA In The Context Of “Smart Manufacturing”

In the context of internet and big data being widely applied in all walks of life,a new-style of technological and industrial revolution named ”Smart Manufacturing” has arisen around the world.China launched the "Made in China 2025" plan in 2015,and took " Smart Manufacturing" as the main direction of the strategy.With the promotion of the national strategic plan,chinese enterprises also began to lay out their "Smart Manufacturing" development strategies.As the main devices for developing smart manufacturing,robots have wide market prospects in China.At present,the advanced technologies of robots are controlled by foreign enterprises.Therefore,some chinese enterprises chose to use cross-border mergers and acquisitions to improve their robot industry layout.With the increasing international competitiveness of China,western countries have imposed technical blockade on China in the field of high technology,which makes it more difficult for chinese enterprises to acquire foreign high-tech enterprises.Against this background,this thesis chooses Midea to acquire the German robot enterprise KUKA as the case for analysis.The acquisition is another strategic acquisition for Midea.In the process of the M&A,Midea chose to relinquish control of KUKA.Based on the background of the M&A,this thesis analyzes the basic situation and financial situation of Midea and KUKA,and believes that the acquisition can meet the development needs of both companies.Then,the thesis summarize and analyze the case of M&A.Firstly,it analyzes the reasons why Midea chose KUKA as target enterprise on the basis of the motivations.Then,the event study method is used to study the short term effects of the case.In the four event window periods,the CRA are all positive.Finally,this thesis makes a brief analysis of the financial situation after the M&A,and concludes that the events have changed the debt situation of Midea.In this thesis,we find that: Firstly,the M&A can not only promote the development of "Double Smart",but also help Midea to develop the European markets.Secondly,the merger event is recognized by the market in the short term,but as the event window period increases,the effect is weakened,and the long-term effects need to be further studied.Thirdly,after the completion of the M&A,the amount of the debt,the asset liability rate and the operating receipt in the short term have increased.Finally,this thesis puts forward comprehensive suggestions according to the conclusions of the study.