The hottest half year acquisition of home applianc

2022-10-19
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Midea's acquisition of home appliance giants of the three countries in half a year is different from the "made in China" route emphasized by its old rivals. Midea chose to buy aggressively to seize the new market in this intelligent era. Unlike the made in China line emphasized by its old rivals, Midea chose to buy aggressively to seize the new market in this intelligent era. Midea has launched three mergers and acquisitions in the international market. The next thing it will face is to accelerate the acquisition process, make these acquisitions better localized and carry out a series of effective integration

from Japan to Germany and then to Italy, Midea has a great appetite for buying goods this time. Since this year, Midea has launched three international acquisitions of Toshiba white power business in Japan, KUKA in Germany, a supplier of intelligent automation solutions, and 80% equity of clivet

in just half a year, Midea quickly cleaned up its goods in overseas markets, swallowed the assets of three international giants at once, and clearly pointed to professional segments such as intelligent manufacturing. Although Midea has been transforming to the intelligent field for many years, can it really realize localization locally and maximize these functions through integration

the road of acquisition is not smooth.

Midea didn't get all blessings after announcing its marriage to KUKA

Midea's acquisition of KUKA has caused quite a storm in the professional field. It is reported that German politicians have expressed concern about the technology outflow caused by the acquisition of KUKA by the United States more than once

in order to ensure the successful completion of the acquisition, Midea Group announced on June 29 that Midea and KUKA had signed the investment agreement on June 28, and the board of supervisors and the executive management committee of KUKA group reached an agreement to recommend KUKA shareholders to accept the tender offer

Midea also made public its commitments to KUKA this time. Midea once again stressed that it would strive to maintain the independence of KUKA, and said it was not willing to enter into a control agreement or promote the use of the prospect of 10 points to delist it. The announcement also said that the premise of signing the agreement was that the board of supervisors and the executive management committee of KUKA group reached an agreement to recommend that KUKA group shareholders accept the tender offer

in fact, at the beginning of the announcement of the acquisition of KUKA by the United States, this seemingly asymmetric acquisition once raised concerns in Germany. It is reported that Gabriel, the German Federal Minister of economy and energy, recently called on German or European enterprises to form an alliance to try to promote other parties to give alternative acquisition plans to KUKA and put forward new acquisition offers. At the same time, EU digital economy Commissioner Oettinger also called on other major shareholders to consider the takeover offer of German or European companies

Midea Group previously announced that it would acquire KUKA shares with 115 euros per share in cash, hoping to increase its current 13.5% stake to more than 30%. The high price quoted by Midea makes it difficult for many other enterprises to approach. In addition, Midea promises to fully maintain the independence of KUKA and its status as a German listed company

in the investment agreement signed by both parties, Midea promised to fully respect KUKA's brand and intellectual property rights, and was ready to enter into an isolation and prevention agreement, promising to keep confidential trade secrets and customer data, so as to maintain a stable relationship between KUKA and its first-class customers and suppliers. At the same time, Midea will fully guarantee the KUKA base and all its employees, and make it clear that it will not promote the change of the existing number of employees worldwide, the closure of the base or any relocation action. Midea has taken into account the independence of KUKA shareholders, the injection of follow-up funds and the protection of intellectual property rights

Ren Minqi, a researcher in the household appliance industry of CIC consultants, believes that Midea is committed to maintaining the independence of KUKA and the stability of employees. On the one hand, this commitment is to stabilize the internal employee sentiment of KUKA enterprises, effectively protect the long-term interests of KUKA company, partners, employees and shareholders, and promote the acquisition process of the two enterprises; On the other hand, it is to better make the German government compromise. This has a great impact on both sides. The localization process of Chinese household appliance enterprises has also developed to a certain extent

however, the validity of the acquisition agreement between the two parties is 7 and a half years, which takes effect from the date of signing. In other words, this signing is just a marriage contract, and it will take two weeks before the two parties really enter the palace. Obviously, after marrying KUKA, Midea will face a greater test: whether it can really accompany KUKA for a lifetime

although Midea's acquisition of KUKA has encountered a crisis of confidence in the local government, it is clear that the management of KUKA has already reached a consensus with Midea

some insiders believe that Germany implements a two-tier corporate governance mechanism, and each company has an executive committee and a supervisory board with real power. After obtaining the control of KUKA, Midea also needs to live in harmony with other shareholders, so that it can effectively take power in the board of supervisors. The previous stance of the German government has shown that China's major shareholders will always be subject to stricter supervision

in this regard, Fang Hongbo, chairman and President of Midea, said that we welcome the diversified shareholder structure. The continuous investment of all shareholders in KUKA is beneficial to KUKA group as a whole. The display resolution is 0.01 n. Midea will assist KUKA to expand its leading position in robotics, automation, logistics and other industries, especially to accelerate its development in the Chinese market, so as to achieve accelerated growth

it is worth noting that for KUKA, whether it can hold Midea this time or not, its investors have made profits. After Midea's acquisition of KUKA, KUKA's share price has risen from 80 euros to 105 euros, an increase of nearly 30%

Ren Minqi said that KUKA group is a well-known industrial robot manufacturer in Germany and is regarded as one of the leading enterprises in German industry 4.0. Midea's tender acquisition of KUKA is good for Midea's group business, which promotes Midea to step up its march into robots. In addition, Midea's large size gives Midea certain conditions for robot manufacturing. For KUKA, Midea, as a well-known manufacturer of household appliances, has strong capital as the foundation, which can promote KUKA to accelerate robot manufacturing. However, for Midea, it also needs to get along with KUKA shareholders and management, and integrate the resources of KUKA Midea locally, so that both sides can better adapt to each other's market

can you digest the three giants

Midea began to make frequent overseas acquisitions in the first half of this year. In March this year, a sudden acquisition opened the prelude to Midea's current round of mergers and acquisitions. Midea Group announced that after negotiation between the two parties, Midea plans to acquire 80.1% equity of Toshiba's white goods business with its own funds of about 53.7 billion yen (about 3.447 billion yuan). After the completion of the acquisition, Midea obtained the global authorization of Toshiba brand for 40 years, as well as more than 5000 patents related to home appliances, as well as the markets, channels and manufacturing bases of Toshiba home appliances in Japan, China and Southeast Asia

then, Midea extended its tentacles to the European market and announced two acquisitions in a row. On June 16, Midea Group announced the official launch of its takeover offer for KUKA, a German robot company. Last week, Midea also announced its purchase of clivet, an Italian air-conditioning company. It is said that Midea did not announce the specific amount because the amount was relatively small. However, for Midea, it will undoubtedly be under great pressure to face the doubts of domestic and foreign markets, gain the trust of the local government, quickly complete the acquisition, and integrate three companies in Japan, Germany and Italy at the same time

even though Chinese enterprises face many obstacles to internationalization, it is obvious that frequent acquisitions in the international market are still a trump card for Chinese enterprises to quickly cover the international market and build their own brands. By acquiring local enterprises, Chinese enterprises can share existing sales channels and technical resources and quickly enter the local market

Ren Minqi believes that Midea has frequently launched three acquisitions, mainly for the group to enter the robot industry and pave the way for enterprise transformation and upgrading. Home appliance giants frequently make efforts in the European and American markets, mainly because China's domestic market has encountered bottlenecks in the internal market, and enterprises need to expand the market scope and digest production capacity. At present, these giants have the desire to enter the international high-end, but who can really go international depends on whether their adjustment of the gap of the rotating sheave can really effectively integrate internally and complete the localization layout

Zuo yanque, a research expert of zhongyikang household appliances, said that under the background of consumption upgrading, capital expansion and industrial transformation, overseas acquisitions of Chinese household appliance enterprises may accelerate in the future. Especially from the perspective of high-tech industrialization, the industrial robot industry has a high threshold, high R & D costs and long R & D cycle. For Midea, its industrialization and large-scale application will be of great value after the acquisition. Accelerating the industrialization application will have a certain market value. However, Midea's acquisitions are relatively frequent, and the three acquisitions encountered different problems in the integration, including geographical, cultural and technical problems. They cannot simply replicate their operations, so they still face great challenges in the integration

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