Research On Risk Control Of Midea Group Transnationally Mergers With Germany Kuka

The sudden outbreak of COVID-19 has had a significant negative impact on the global economy,spawning a large-scale de-globalization phenomenon around the world.Cross-border mergers and acquisitions between companies have been subject to stricter supervision,and the risks of corporate mergers and acquisitions have also increased.In this context,companies that conduct cross-border M&A should pay full attention to the risks associated with cross-border M&A,which has an important impact on whether the M&A is successful.The case of Midea Group’s cross-border merger of KUKA in Germany is a typical case of successful mergers and acquisitions in my country in recent years.This paper sorts out the relevant literature on cross-border mergers and acquisitions and cross-border mergers and acquisitions risks,and analyzes the necessity of corporate cross-border mergers and acquisitions to take risk control measures.By introducing the general situation of the two companies,the motives of Midea Group’s merger and acquisition process and the process of this merger,identify the merger and acquisition risks that Midea Group may face in this merger and acquisition,and analyze the advantages and Inadequacies,provide reference for the risk control measures adopted by Chinese enterprises in the future cross-border mergers and acquisitions.After studying the case of Midea Group’s acquisition of German KUKA,the main conclusions are as follows:(1)Midea Group chose to acquire German KUKA according to its own needs for transformation and upgrading.Due to differences in systems and laws,the main risks faced are pricing risk,financing risk,payment and exchange rate risk,political and legal risk,debt repayment risk and integration risk.After Midea decided to acquire KUKA,it adopted a step-by-step strategy and actively used the power of intermediaries.In order to increase the speed of mergers and acquisitions,we adopted the method of all-cash payment and formulated appropriate financing plans,which reduced financing and payment risks.Actively seeking government support and taking separate integration measures after mergers and acquisitions have greatly reduced integration risks.Midea attaches great importance to M&A risks and has taken a series of risk control measures to promote the success of M&A.(2)Through the change of Z value before and after the merger of Midea,it is found that the overall financial risk of Midea Group has increased just after the merger and acquisition,and the financial risk has been reduced through subsequent integration.(3)According to Midea’s M&A risk control measures,the enlightenment is: Enterprises should choose appropriate M&A targets,formulate correct M&A strategies,reduce financing costs,and fully deal with exchange rate fluctuations.At the same time,establish an early warning mechanism for corporate political and legal risks,seek government support,improve corporate profitability,and promote comprehensive integration between the two parties.