Study On Motivation And Performance Of Midea Group’s Acquisition Of Germany Kuka

With the increasing participation in globalization,the competition among enterprises has become more and more fierce.Under the national policy strategies of "One Belt,One Road","Going Global" and "Made in China 2025",many enterprises have sought new business and development paths through cross-border M&A.In this context,Midea Group also quickly proposed a strategy to promote the transformation and upgrading of the industry by cross-border mergers and acquisitions.Midea is one of the giants of Chinese home appliance companies and enjoys a widespread reputation in China;as the representative of Germany’s "Industry 4.0",KUKA has advanced industrial robot core technology internationally.Midea’s acquisition of KUKA is the largest merger and acquisition event among home appliance companies since 2016.This paper explores the motivation and performance of Midea’s M&A in order to enrich the theoretical study of cross-border M&A and provide practical reference and reference for cross-border M&A of home appliance enterprises.This paper mainly adopts literature research method and case study method to research this M&A event of Midea Group.In the first place,according to the external economic environment policy at that time,the domestic home appliance industry environment and Midea’s future planning and development direction,etc.,the background of the M&A is described.In the second part,the whole process of the acquisition of KUKA in Germany by Midea Group is explained,and the measures taken by Midea Group in the M&A are analyzed.In this merger,Sino-US and the United States fully rely on third-party intermediaries to promote the merger process,broaden financing channels and reduce financial pressure.Continuing to strengthen the integration of channels and technologies between the two parties,KUKA has been given a certain degree of independence in terms of human and cultural resources,thus promoting Midea’s successful acquisition of KUKA.Thirdly,the motive of Midea’s acquisition of KUKA is analyzed.Midea wants to promote the implementation of the "Double Intelligence" strategy of the company through this acquisition of KUKA,and promote diversified operations;to achieve complementary resource advantages with KUKA,KUKA has advanced robots and With the advantages of automation technology,Midea has a huge advantage in the Chinese market;it needs to develop the robot market and improve the logistics business layout.Then,a more elaborated exploration of the financial and non-financial performance of this merger is made.This paper chooses an event study approach to dissect the market reaction to the acquisition of KUKA by Midea.In conducting the medium-and long-term performance analysis,the paper looks at four different dimensions of key financial indexes.The negative cumulative excess return during this event period indicates that the financial markets and investors remain observant and negative towards Midea for its cross-border M&A of KUKA in the short term.The analysis of financial indicators shows that this M&A,although adding heavy debt pressure for Midea,has increased operating income and improved profitability.The analysis of non-financial indicators shows that after the acquisition of KUKA by Midea,its market share expanded and the company’s market value increased.Robotics and smart logistics system businesses have also achieved rapid development.Finally,this paper provides insightful recommendations for the future development of home appliance companies in response to the findings of this study:rationally use mergers and acquisitions to acquire technical resources;select appropriate target companies based on corporate strategic layout;choose reasonable financing and payment methods;strengthen post-merger Resource Integration.I hope it can be a reference for the future development of China’s home appliance manufacturing industry.