Study On Motivation And Performance Of Midea Group’s Acquisition Of Hiconics Under The Background Of Double Carbon

As one of the leaders in the new energy industry,China is at the forefront of the world in photovoltaic power generation,low-carbon emission reduction,and electric vehicle technology.In order to meet the future demand for energy and to reduce the negative impacts of traditional energy sources such as increased costs and environmental pollution,the development of the new energy industry is imperative.Under the national policy strategy,many enterprises have sought new business and development paths through mergers and acquisitions.In this context,Midea Group also quickly proposed cross-field M&A to promote the industry’s transformation and upgrading strategy.Midea is a giant of Chinese home appliance enterprises and enjoys a wide reputation in China;it enters the new energy field through cross-industry M&A in today’s industrial transformation,aiming to provide some useful reference for cross-industry M&A in China’s home appliance industry.In the domestic home appliance industry into the mature period,the industry growth rate gradually slowed down.With the upgrading of industrial structure and the support of national policies for green and intelligent industries,new opportunities and growth points have accelerated the process of diversification strategy development of the United States,and the layout of the new energy field of the United States is the result of a combination of its existing industrial chain advantages and the sunrise properties of the new energy industry.In this paper,we analyze the reasons for choosing Hiconics from three aspects: the development strategy of Midea,the core advantages of the two parties and the advantages of the new energy business,determine the reasonableness of the transaction pricing in combination with the valuation analysis,and finally evaluate the effect of the merger and acquisition in the light of the business development of the enterprises after the merger and acquisition.Through analysis and summary,this paper concludes several motives of the whole M&A case: Midea Group’s diversified M&A is the development direction it must adhere to;new energy,industrial automation and other fields are its new growth points in the future;Hiconics is a high-quality M&A target whose advantageous business matches with a number of strategic sectors of Midea Group and has a synergistic effect,and after the M&A,both Hiconics’ s turnaround to profit after divesting its business,and the new growth of Midea Group’s business in the B segment show that the M&A has produced better results.After the M&A,both the profitability of Hiconics after divesting its business and the new growth of Midea Group’s business in the B-side segment show that the M&A has produced better results.Although the new energy vehicle business is not as smooth as initially envisioned after the merger,the expansion in the direction of photovoltaic and energy storage business and the diversified strategic layout of Midea Group have produced a strong synergy effect.Finally,it is concluded that large enterprises should:(1)rationally formulate diversification strategies;(2)select target enterprises based on the strategic layout of enterprises;(3)comprehensively understand the target companies and conduct reasonable valuation;and(4)strengthen the integration effect of both sides of the merger and acquisition when conducting diversification mergers and acquisitions,especially when laying out sunrise industries.