Analysis Of The Motivation And Effect Of Haier's Merger And Acquisition Of GE Group's Appliance Business

With the development of China's economy,the consumption level of the people has risen,the popularity of various household appliances in China has become higher and higher,and the demand has become more and more vigorous.In order to attract more consumers,the competition among various home appliance companies is becoming more and more fierce.;Due to the violent fluctuations in the financial market in 2015,the global market for white goods has been affected,and the market situation is declining.This is also true in China,so many companies choose to seize market share to remain competitive.In this context,many companies have chosen M&A for their own development.Therefore,since 2015,China's home appliance companies seem to have entered a boom of mergers and acquisitions,and most of them are overseas mergers and acquisitions.such as Haier's acquisition of GE Group's home appliance business,Midea's acquisition of German KUKA,etc.Many scholars have studied the mergers and acquisitions of home appliance companies.Haier's acquisition of GE Group's home appliance business is the largest overseas M&A event by China's home appliance companies.This article takes this as a case.In the first part of the article,it summarizes the relevant domestic and foreign related literatures and related theories.On the basis of these analysis,it is found that the main motivation of Haier M&A is to exert synergy,increase market share and increase economic benefits.The latter part of the paper analyzes its market effects and synergistic effects through event analysis,financial indicator method and some non-financial indicators,and uses spss software to verify the previous analysis,and finally judges the market's response to the event,and determine if it implements some of the drivers.According to the analysis of the effect results and the motivations of the previous analysis,Haier's acquisition has achieved some motives,as follows: 1.The market has a strong positive attitude towards Haier's merger and acquisition,indicating that the merger has improved Haier to a certain extent.The brand influence;2.M&A has achieved certain business effects,and its specific performance has achieved certain economies of scale,increased market share,and achieved complementary advantages,but the management synergy and financial synergy were only partially realized through the current analysis,and it is necessary to observe it in the future.Finally,through the analysis of the motivations and conclusions,this paper summarizes some experiences and inspirations of M&A,and hopes to bring some reference to other companies that want overseas mergers and acquisitions.