Case Study On The Failure Of Gree Electric Appliances To Directional Add-Issuance Acquisition Of Zhuhai Yinlong

With the development of the world economy,a single-business-led company often struggles to the final stage and is difficult to break through its own bottleneck.Therefore,more and more companies are advancing their corporate diversification strategies through “cross-border mergers and acquisitions”,occupying more market share and gaining more profits.However,there are only a handful of companies that have successfully succeeded in diversifying the road.The acquisition of Zhuhai Yinlong by the directional add-issuance acquisition of Gree Electric Appliances is another typical case of failure.In August 2016,Gree officially announced the acquisition of Zhuhai Yinlong,which masters the core lithium titanate battery technology.It hopes to exert synergy effect through this acquisition,but because of the influence of private placement,it has caused fierce opposition from small and medium shareholders,and the acquisition plan has been rejected.The transaction failed.This paper will analyze the reasons for this transaction process,trading plan,and transaction failure,in order to provide experience for other companies to conduct mergers and acquisitions.