Research On The Motivation And Effect Of Midea Group’s Merger Of Little Swan

Contemporary enterprises are actively using various means to continuously enhance their comprehensive capabilities to face the increasingly competitive market environment.In addition to relying on their own long-term accumulation,many companies also choose to merge other high-quality companies in order to speed up their development.As a more popular form of merger in the domestic market,share swaps,mergers and acquisitions,have attracted more companies’ attention.The competitive landscape in the home appliance industry has been very fierce as early as more than a decade ago.Midea Group acquired part of Little Swan’s equity in 2008 in order to expand its own washing machine and other sectors,and has increased its holdings several times in the following years.The share ratio has gained absolute control over Little Swan.In 2018,Midea Group once again took action on Little Swan,and completed the merger and acquisition of shares between two large listed companies on the grounds of eliminating the drawbacks of long-term horizontal competition and strengthening corporate governance.After this merger,the two parties merged into one,which further improved the management efficiency of Midea Group on Little Swan,and provided new ideas for promoting the leapfrog development of my country’s home appliance industry.Midea Group exchanged its own stock with that of Little Swan.This exchange has brought new ideas to the development layout and future growth of the washing machine industry.First of all,this article talks the general background of the event to be studied and the significance of studying this event,clarifies the theories used in the article,and summarizes these theories.The second is the merger of the two parties and the merger and acquisition of shares.A detailed introduction is carried out,and again is the main research content of this article.A series of evaluations are carried out on the motivation and effect of the Midea Group’s share swap and merger of the Little Swan case through the trial calculation of share swap ratio,EVA analysis method,and event research method.,Including market response evaluation,financial performance evaluation and non-financial effect evaluation.Finally,after careful evaluation of this case from beginning to end,the corresponding conclusive language was summarized and the enlightenment brought by it was put forward.Midea Group is at the pinnacle of my country’s home appliance industry.It absorbed and merged by exchanging shares in the two companies.It instantly made Little Swan,a high-quality,highly-national company,a part of itself.The motivation behind this behavior And the effect is worthy of attention.According to the research of this article,it is more convenient for Midea Group to manage Little Swan after this merger.In the process of merger,it considers the feelings of small and medium shareholders to ensure that they can also obtain benefits.This is very beneficial to Midea Group.The implementation of the intelligent strategy can be said to be a successful case of share swap,absorption and merger,and it will provide a positive reference for other companies in the same industry in the future when they are involved in the method of share swap,absorption and merger.