Motivation And Performance Analysis Of Cross-border Mergers And Acquisitions Of Home Appliance Enterprises

With the decline of global economic growth and the deepening development of China’s industrial reform,C hina’s economy has entered the "new normal" stage.After Germany first proposed the "Industry 4.0" strategy,C hina also proposed the "Made in C hina 2025" plan in line with its own national conditions.Compared with developed countries that have accumulated more than a century of technology,Chinese industrial fundamental is relatively weak,and science and technology falls behind as well.Cross-border mergers and acquisitions are the most efficient and cost-effective way to obtain advanced technology.Therefore,more and more large-scale enterprises in C hina have embarked on the path of cross-border mergers and acquisitions,acquiring high-end science and technology to enhance core competitiveness,and strive to leap from the lower part of the industrial value chain to the higher end.The dissertation takes the cross-border merger and acquisition of the KUKA case initiated by Midea Group,a leading home appliance company in 2016,as an example to study the motivations and performance impacts of cross-border mergers and acquisitions of domestic home appliance companies.The article firstly sorts out the research results of cross-border mergers and acquisitions cases in domestic and abroad,and provides theoretical basis and reference for the writing of this article.Secondly,it gives a detailed overview of the relevant core concepts and theories,and provides a solid theoretical fundame ntal for the article.Thirdly,the essay analyzes the market and trend at home appliance industry and robot industry in detail.Then,it briefly outlines the basic situation of these two parties,and introduces the entire merger and acquisition implementat ion process and integration measures.And next,the article starts from improving strategic deployment,assisting the robot industry layout,promoting logistics business upgrade,and expanding brand effects.Besides,the paper analyzes the motivation of mergers and acquisitions from the perspectives of complementing market resources.In addition,this article uses the event research and the financial and non-financial index methods to analyze mergers and acquisitions not only from the perspective of long-term and short-term market response,but also from both financial and non-financial performance.And then,we analyze and evaluate the company’s performance.Finally,this article summarizes the way of cross-border mergers and acquisitions in the United States,draws conclusions and proposes merger and acquisition experience that can be used for reference.In generally,KUKA has a significant impact on the short-term performance of Midea’s mergers and acquisitions,whereas the later impact performance is weak.However,from the analysis of non-financial indicators,it can be seen that Midea has basically achieved its original goal of acquiring K UKA.For Midea’s successful merger and acquisition of KUKA,the article believes that a correct target of mergers and acquisitions,stable financial conditions and sufficient mergers and acquisitions are essential conditions to ensure successful mergers and acquisitions.We hope that it can play a role as one of successful cross-border mergers and acquisitions cases within Chinese home appliance companies.