Motivation And Performance Analysis Of Midea Group’s Cross-border Merger And Acquisition Of German Kuka

As China’s economic development enters a new normal state,it urges the adjustment and upgrading of the production structure.The home appliance industry,as an important part of China’s traditional manufacturing industry,is fiercely competitive,and the near-saturated market state has been difficult to meet the needs of development.In the context of the "Made in China 2025" policy,in order to break through the bottleneck period of the home appliance industry and adapt to the development trend of the consumer appliance industry’s consumption upgrade,Midea Group,one of the leading companies in the Chinese home appliance industry,hopes to quickly acquire foreign advanced technical resources and gain new profit space through mergers and acquisitions.The acquired party is German Kuka System Co.,Ltd.,one of the world’s four largest robot companies,its brand influence is world-class.Emerging economies,Midea Group,mergers and acquisitions,cross-border mergers and acquisitions of developed country companies in Germany,KUKA,large scale and distinctive characteristics,so this article selects this case for research.This article conducts a multi-angle analysis of the selected cases to comprehensively study the issues reflected in the cases.In the context of China ’s policy background that emphasizes the “going global” strategy and the economic background that encourages large domestic enterprises to develop international markets and overseas investment,Midea Group ’s merger and acquisition of German Kuka belongs to emerging economies,multinational mergers and acquisitions of developed countries.One characteristic is to analyze the motivation of Midea Group’s acquisition of KUKA,and build a performance evaluation index system based on the motivation research,focusing on evaluating the short-term market effects and long-term performance changes brought by Midea Group to Midea Group.This article uses the economic value-added index method to calculate the EVA return rate and EVA growth rate to deeply analyze the impact of the M & A event on the company’s long-term performance.Using non-financial performance analysis,the post-merger development situation is analyzed from the perspective of Midea ’s M & A motivation.This article draws the following conclusions:Midea’s motive for acquiring KUKA can be divided into three perspectives: acquiring strategic assets,improving corporate efficiency,and broadening overseas markets.Specifically,Make up for technical shortcomings and promote midea’s "double wisdom" strategy;Establish a dominant position in the robot market;Cater to the development trend of e-commerce and promote the development of logistics industry of the group;Expand the international effect of midea brand.The excess cumulative income calculated by the event research method is greater than zero,indicating that mergers and acquisitions bring wealth to shareholders in a short period of time.An analysis of Midea’s Economic Value Added(EVA)shows that EVA increased significantly during the year of the merger and acquisition,but the return rate of EVA continued to decline in the following two years,indicating that this merger has improved Midea’s long-term performance,but the improvement effect is not obvious.The revenue scale and gross profit margin of the robot industry are better than other companies in the same industry,and intelligent logistics has been reformed.Finally,this paper summarizes the research enlightenment,in order to hope to achieve the transformation and upgrading of household appliances enterprises through mergers and acquisitions to put forward corresponding Suggestions,bring useful inspiration.