Study On Synergies Between Midea And Kuka

With the rapid development of China's economy,the competitiveness of Chinese household appliances enterprises is increasing.Especially,as the three giants of China's household appliances enterprises,Midea,Haier and Gree have the vast majority of domestic market share.However,due to changes in China's macroeconomic environment,slowing down economic growth,rising labor costs and fierce competition among enterprises,the domestic market capacity is becoming increasingly tighter and the profit space is shrinking.In order to sustain and healthy growth,large household appliances enterprises have carried out transformation and upgrading one after another,paying more attention to technological innovation,product function research and development to meet the diversification of consumers.At the same time,we should accelerate the process of internationalization,actively participate in international competition and realize international operation.Hope to get more market and profit.Through overseas M&A,enterprises can get advanced technical support and open up a wide market.Therefore,in recent years,more and more overseas M&A initiated by domestic enterprises are in the forefront of the world in terms of the scale of M&A and the amount of target payment.To a large extent,enterprises choose to carry out overseas M&A in order to obtain synergistic effect after M&A,but the results after M&A are mostly unsatisfactory,only about 20% of M&A achieve the expected goal.As far as the current progress is concerned,the M&A of Kuka by Midea is a relatively successful M&A.I hope take this case to study its synergistic effect and the reasons for its good effect.This M&A is the largest overseas M&A in the household appliances industry in 2016,whether in terms of transaction amount or scale.It completed in January,2017,and the M&A completed more than two years.Therefore,the case analysis is of great representativeness and practical significance.I study this M&A case from the perspective of synergy effect,hoping to provide some reference for the future overseas M&A activities of enterprises.Firstly,this paper lists the research results of overseas M&A and synergistic effect by domestic and foreign researchers.There are many qualitative and quantitative studies on this issue.Then,the concept of cross-border M&A,the explanation of M&A causes and the theoretical connotation of synergistic effect motivation are elaborated.Then,the analysis of the M&A of Kuka by Midea.From the background of M&A,the briefing of both sides of M&A to the process of M&A and the motivation of M&A,the whole process of M&A is elaborated from various angles.Next,the center of this paper.The analysis of synergy effect is carried out.The financial data are studied from three aspects: management synergy,financial synergy and business synergy.The analysis shows that the M&A is successful.From the financial data,it also produces good synergy effect.Finally,the reasons of synergistic effect and the Enlightenment of the case are analyzed.