A Case Analysis Of Midea Group Cross-border Merging KUKA

In recent years,the slowdown in domestic economic growth and the deep adjustment of economic structure have caused many industries to face transformation and upgrading.In manufacturing,robot automation in the manufacturing process has become a global trend.In our country,due to rising wage costs and requirements of product quality continue to increase,costs of corporate production rise constantly.In order to reduce production costs,the demand for robots in the manufacturing industry is gradually increasing.In the meantime,in order to cope with the economic restructuring and upgrading,mergers happened in domestic enterprises are increasing in number,including many cross-border mergers and acquisitions.It is precisely in the process of China's economic restructuring and upgrading that Midea Group formulates the company's development strategy,explores overseas markets and seeks opportunities to achieve the strategic goal of “leading products,driving efficiency and global operations”.Since 2007,when it built its first overseas base in Vietnam,Midea Group has started its global operation strategy.After that,it established production bases in Belarus,Egypt,Brazil,Argentina and India.Besides,in order to achieve industrial upgrading and global operations,Midea Group contacts and collaborates with appliance industry and manufacturing enterprises actively.Cross-border mergers and acquisitions KUKA Group is an action that Midea Group layout in-depth,explore overseas business and seek new business growth point in the field of robotics and automation.The paper makes a brief review of M & A related theories firstly,then introduces the basic situation,business conditions,financial status and M & A process of M & A companies in detail,and summarizes the characteristics of this M & A,which is cross-border mergers and acquisitions,not to delist KUKA for the purpose and premium mergers and acquisitions.Then the article analyzes the motivation,synergies,M & A price,M & A performance and M& A risks one by one.I think,in the aspect of the motivation of the merger and acquisition,there are mainly four factors: strategic layout of the company,industrial upgrading,industry selection and company selection.In the aspect of synergies,there are mainly businesssynergies,financial synergies and management synergies.In the aspect of M & A prices,M &A prices are relatively reasonable and acceptable,taking into account the strategic investment of Midea Group and the development potential of KUKA.In the aspect of M & A performance,we analyze with event research method and financial index analysis method respectively.The results show that M & A brings positive short-term market performance and long-term financial performance.In the aspect of merger risk,there are mainly liabilities risk,goodwill impairment risk and cooperation risk.Finally,on the basis of the case analysis,we get some enlightenment that the M & A should meet the company's strategic objectives and select the appropriate M & A targets.At the same time,some suggestions are put forward for the M & A price and the integration after the M & A.