The Case Study Of General Electric Appliance Acquired By Qingdao Haier

The globalization of the economy has brought many opportunities and challenges for companies to “go global”.There are two ways to “go global”,including greenfield investment and cross-border mergers and acquisitions.Compared with greenfield investment,cross-border mergers and acquisitions require less people,money,and goods.Therefore,in recent years,many companies have chosen to go abroad through cross-border mergers and acquisitions.Among many companies which go out,there are also electrical industry companies.In China,the competition in the home appliance industry is extremely fierce.This competitive pressure is not only from domestic brands but also from foreign brands.In the face of a basic saturated domestic market and a long-term price war,"going out" is an inevitable choice for Chinese companies.Cross-border mergers and acquisitions are an important and rapid means of internationalizing an enterprise,expanding its original size,integrating high-quality resources after mergers and acquisitions,and enhancing its own competitiveness.This case that Qingdao Haier(stock code: 600690)acquiring GE Appliances is selected,which is the largest cross-border M&A case in China's domestic appliance industry so far.It will be described in this article that why Haier acquired GEA and how the performance is after Haier acquiring GEA.This article is mainly divided into the following aspects:The first chapter is the introduction.The beginning of the first part of the text is explained through the context in which the case of the paper was written plus the significance of the research and analysis;then the literature review,mainly expounding the theoretical basis of the study,including the acquisition of,especially the theoretical study.Introduction,including motivation and performance-related research theories and methods,as well as domestic companies,what are the reasons for overseas mergers and acquisitions,what risks they will encounter,etc.,thus providing a theoretical basis for the study of papers;The M&A performance method and the framework of this paper.The first chapter is the introduction.In this part,the background of the research and the significance of the research will be introduced;then it is the literature review which is elaborated about the theoretical basis of the study,including the theory of mergers and acquisitions,especially cross-border mergers and acquisitions,the motivation of mergers and acquisitions,the motivation of the merger and acquisition and the risks it will face are elaborated for the transnational enterprises in China.This will provide the theoretical basis for the study of the dissertation case.Finally,it will describe the content frame of the research method and the dissertation.The third chapter is case analysis.This is the most central part of this paper.Through the specific description of the theoretical foundation and the case itself in the previous two chapters,this chapter combines the theory with the actual case.By describing the background of the case and Qingdao Haier,the motivation of this mergers and acquisitions was analyzed,the changes in the financial performance and non-financial performance of Qingdao Haier before and after the merger and acquisition were also analyzed,and the cases were deeply anatomized.After more than a year of integration,although the performance on financial performance is not greatly affected by mergers and acquisitions,the integration of non-financial performance is significant.This is also related to Haier's acquisition of general appliances.In general,with the continuous release of Haier's and GE's synergies in brands,markets,channels,and research and development after the acquisition,Haier will continue to improve in a broader growth space.Therefore,from a long-term perspective,Qingdao Haier's acquisition of general-purpose household appliances can be considered as a successful cross-border M&A.The fourth chapter is case inspiration.Based on the foregoing analysis and research,the implications of Haier's overseas acquisitions are summarized,which provide meaningful reference for domestic companies,especially home appliance companies,to implement overseas M&A activities.