Research On The Motivation And Economic Consequences Of Midea Group’s Share Exchange And Merger Of Little Swan

The competition among leading appliance firms is exacerbating,and Fang Hongbo,chairman of Midea cluster,said,"Midea’s rival isn’t Haier not Gree however itself",that highlights his determination to perform surgical process among Midea,"privatize very little Swan" "internal business unit merger and reorganization" "Kuka,Toshiba appliances amendment hands" "industrial web platform market operation""high-end complete colmo A series of intensive mixtures like "new product launch" have created a a lot of technological Midea.the topic of this text is that the share swap and merger of Midea cluster with very little Swan.Midea is one in all the few firms within the A-share market that has voluntarily given up its standing as a finance platform for its subsidiaries and is that the initial listed company within the appliance producing trade to soak up and merge A+B shares.it’s price exploring why Midea cluster had to undertake an additional share swap and absorption merger of Xiaoswan,a well known company within the menage appliances(especially laundry machines)sector,that is underneath constant management as Midea cluster.The purpose of this paper is to reinforce the analysis of the motivations and economic consequences of share swap mergers,and to produce reference for the utilization of share swap mergers within the future.Therefore,this paper adopts a case study approach,firstly,it explains the thought of share swap merger,potency theory,economy of scale theory and market temporal order theory from the theoretical analysis level;second,it introduces the fundamental data of the merging parties,and introduces the merger method and also the key terms of the merger;then it analyses the motivation,once introducing the temporal order of the merger,it analyses the motivation of the merging parties: the merging parties,Midea cluster,area unit The incorporate party,Midea,was motivated by the elimination of competition,the mixing of internal resources,the enlargement of market power and also the overall strategic transformation,whereas the incorporate party,Xiaotian,was motivated by the breakthrough of development bottlenecks,the synergistic development of its business and also the protection of shareholders’ interests.The study finds that firms have to be compelled to select the proper temporal order and technique of merger in keeping with their own development and environmental background,to cut back the value of merger,and to specialize in the mixing of the incorporate company,therefore on totally absorb the incorporate company into their own development strategy.