Research On The Motivation And Performance Of Qingdao Haier's Merger And Acquisition With GE Appliances

Since the 1990 s,the development of economic globalization has made enterprises in different countries and regions increasingly connected.Enterprises have chosen to go abroad to seek new opportunities for their own development.Overseas mergers and acquisitions have become enterprises to participate in global resource allocation and realize capital.An important means of expansion,the household appliance industry,as an important part of China's traditional manufacturing industry,has always been the pillar industry of China's economic growth,but since 2013,China's economy has entered a new normal,due to the macroeconomic downturn and industrial restructuring Need to be affected by other factors,the competition in the home appliance market is becoming increasingly fierce.In order to become more and more prominent in the increasingly fierce home appliance market and gain recognition from more customers,China's home appliance companies have chosen overseas mergers and acquisitions to look globally and look for opportunities around the world.,open up new markets.The cross-border M&A activities of enterprises originated in the West.Most of the relevant theoretical researches were developed on the basis of studying the cases of cross-border mergers and acquisitions in Western developed countries.However,with the acceleration of China's internationalization process,Chinese enterprises' cross-border M&A activities are also booming.Although the success rate is not high,it still cannot prevent Chinese enterprises' from entering the international arena.Then,in the context of China's unique environment,what are the reasons for promoting enterprises to choose overseas mergers and acquisitions? How to evaluate its effects after the merger has become the focus of attention from all walks of life.Based on the analysis of mergers and acquisitions,M&A performance and other overseas M&A literatures,this paper combines theoretical analysis with case studies to take the case of Qingdao Haier's acquisition of general-purpose home appliances,the largest overseas M&A case in China's home appliance history in 2016.Focus on the motivation and performance of M&A,and test whether the M&A activity can create value for Qingdao Haier.Firstly,the background of mergers and acquisitions cases is described from the development status of China's home appliance manufacturing industry and the situation of mergers and acquisitions.Secondly,basedon the description of the merger and acquisition process,the merger party will start to explore the agreement.The reason is to analyze the impact of the merger on Qingdao Haier.From the perspective of financial performance,the merger as a whole has improved the profit,operation,debt repayment and growth ability of the company.In response,the market is also optimistic about the acquisition of general-purpose home appliances by Qingdao Haier.From a non-financial perspective,the market share,technology and R&D capabilities,brand value and marketing channels of the company have been improved.Overall,The acquisition has successfully created value for the investors of Qingdao Haier,which has brought positive effects and can also provide useful enlightenment for the future overseas mergers and acquisitions of China's home appliance enterprises.