Research On The Performance Of Haier Smart Home’s Cross-border Acquisition Of Italian Candy

With the development of the Internet and artificial intelligence technology,consumer demand is constantly upgrading,and customers’ demand for smart home appliances is growing day by day.In order to expand market share and enhance research and development capabilities,more and more Chinese household electrical appliance enterprises have embarked on the road of cross-border M&A,such as Midea Group’s M&A of Toshiba household appliances and KUKA robot,Haier acquired Fisher & Paykel and General Electric.The motivation of M&A has also shifted from acquiring tangible assets such as production lines to acquiring intangible assets such as core technologies.Haier Smart Home chose Italian Candy as the target company for two reasons: First,it took a fancy to the influence of the Candy brand in the European market and the highly complementary product categories.Second,it took a fancy to its R&D capabilities and market share in the field of smart home appliances,The second is that Candy has a strong R&D capability and market share in the field of smart home appliances,which are highly compatible with the global brand strategy and ecological brand strategy.Therefore,this paper takes Haier Smart Home’s cross-border acquisition of Italian Candy as an example,and uses a series of methods to study whether its M&A motivation has been achieved and whether its M&A performance has improved.Firstly,this paper reviews and sorts out the relevant literature and existing theories related to cross-border M&A.Secondly,it briefly introduces the basic situation,and discusses the motivation of Haier Smart Home’s cross-border M&A of Italian Candy by studying the background of M&A and reviewing the process of M&A.Then comprehensively use event study method,financial index and non-financial indicator analysis method to carry out performance research: select AR and CAR to study market performance;select indicators related to operating income structure,profitability,operating ability and solvency to study financial performance;select relevant indicators such as brand value,market share and R&D capability to study non-financial performance.Furthermore,it analyzes the reasons for the improvement of Haier Smart Home’s cross-border M&A performance,the risks and countermeasures brought about by cross-border M&A.Finally,the paper get the conclusion: The market performance is stable,cross-border M&A neither has a negative impact on the stock price,nor has enhanced the confidence of market investors;The improvement of financial performance is mainly reflected in the significant increase in operating revenue in the European market,the overall improvement in operating capacity,continuous profitability and long-term solvency;The improvement of non-financial performance is mainly reflected in the increase of brand value,the increase of global market share and the enhancement of R&D capability.Through the case study of Haier Smart Home’s cross-border merger and acquisition of Italian Candy,it is hoped that this paper can make some contributions to improving the performance of Chinese home appliance companies and enriching the theoretical system of cross-border M&A.