The internationalization of Chinese household electrical appliance enterprises is another city. On January 15, Qingdao Haier issued a statement saying that it intends to purchase its home appliance business-related assets from General Electric (GE) in cash, with a transaction amount of US$5.4 billion. Expect to complete the transaction in the middle of this year On January 14th, US Eastern Time, Qingdao Haier listed company and General Electric signed the "Equity and Asset Purchase Agreement", intending to purchase the related assets of the home appliance business from General Electric through cash, the transaction amount is 5.4 billion US dollars. The underlying assets of this transaction are the electrical appliance business assets held by General Electric. The net book value of the underlying assets at the end of 2014 was US$ 1.840 billion (unaudited). The announcement said that the transaction will be completed through its own funds and M&A loans. The initial estimated amount of the M&A loan is about 60% of the transaction consideration. Haier Group has two listed companies, Qingdao Haier and Haier Electric. According to the announcement, Qingdao Haier, which is 41% owned by Haier Group, will integrate GE's home appliance business. As part of its global expansion, Qingdao Haier integrated the overseas business of Haier Group in June 2015. Zhang Ruimin, Chairman and CEO of Haier Group, said: This is a new starting point for strategic cooperation between the two parties. I believe that the comprehensive strategic cooperation between the two parties will bring higher value to the stakeholders of the two companies, and let Haier and GM Electrical brands add value in synergy. GE Chief Executive Jeff Immelt said: The United States is Haier's focus on expanding manufacturing scale and further investment. We are pleased to sell our home appliance business to Haier and launch this new partnership. The acquisition is currently not completed. Haier said that it is still necessary to pass the shareholders' meeting to review and complete the filing of the China Development and Reform Commission and pass the anti-monopoly review procedures of the United States and other countries. General Electric said that the transaction completion time is scheduled for mid-2016. “A large number of high-end market users are especially important to Haier†GE Appliances has a 100-year history in the United States and is recognized by local users in the United States. In the European and American markets, GE, Whirlpool, Bosch and other home appliance brands have long dominated the mid- to high-end market, which is the most difficult territory for Chinese companies to attack. “Taking it means it has won its R&D, channels, products, brands, and more importantly, it has a large number of users in the high-end market, which is especially important for Haier, which is trying to expand its internationalization.†China Electronics Chamber of Commerce Deputy Secretary-General Lu Limbo said. Lu Jianbo’s evaluation of Haier’s acquisition of GE’s home appliance business is “more significant than Lenovo’s acquisition of IBM and can accelerate Haier’s internationalization process.†According to the information, GE Appliances has nine plants in five US states, with logistics and distribution capabilities, and a strong retail network relationship in the US market. In 2014, corporate income reached 5.9 billion US dollars and about 400 million US dollars before interest, taxes, depreciation and amortization. These are the advantages that make Chinese companies covet. Liang Haishan, chairman of Qingdao Haier Co., Ltd. also mentioned that Qingdao Haier and GE's home appliance business are highly complementary in the fields of brand, market, product innovation, supply chain and quality management. The cooperation between the two parties will further enhance the brand of Haier and General Electric. GE's experienced and successful management team will continue to be responsible for the direction of the business and participate in the board of directors. Question 1 Why do you want to make an overseas acquisition? Before Haier, there were a large number of Chinese companies going out for food and seeking to acquire the target. As early as 2004, TCL acquired Thomson's global color TV business. In the same year, it acquired the European mobile phone manufacturer Alcatel-Lucent. In 2011, Haier also acquired Sanyo in Japan. In June last year, Skyworth officially acquired the TV business of Metz, the old German TV manufacturer. In early August of the same year, Hisense officially announced that it would acquire Sharp's Mexican color TV factory and Sharp TV America (except Brazil) for five-year brand use rights for US$23.7 million. . Liang Zhenpeng, an expert in the home appliance industry, said that Chinese companies have mainly relied on two ways to break through the European and American markets. One is OEM, and the other is independent brands. Although the independent brands have entered Europe and the United States, their influence has been minimal. Opening up the high-end market in Europe and the United States through acquisition is the most effective shortcut for Chinese companies. At the same time, the era of rapid growth in the domestic market has gone forever. In the past two years, growth has been particularly slow, and even the predicament of negative growth has occurred. The overall plate in the Chinese market is getting smaller, it is going to carry out aggressive growth, and the industry competition is fierce, leading to a sharp decline in profits. "In contrast, the overseas market is broader and more rational. Even if there is a price war in the European and American markets, there will be a certain bottom line. It will not be as fierce as the Chinese home appliance market." Liang Zhenpeng said, so many companies have gone abroad to seek more. a vast market. Judging from the international development path of Chinese household appliances in the past 20 years, China's home appliance industry has already passed the stage of business shipments and products going to sea, and when the brand goes out to sea. Behind the crazy overseas M&A of home appliance companies means a comprehensive upgrade of the development stage of China's home appliance industry. Is the value of $25.4 billion worthwhile? The amount of the Haier bid for the GE appliance business was $5.4 billion, which is nearly $2 billion higher than Electrolux's bid a year ago. It is clearly a good deal for GE. In September 2014, GE sold its home appliance business to Electrolux for $3.3 billion. At the time, GE and Electrolux jointly announced that the transaction was approved by the board of directors of both parties and is expected to complete various transaction procedures by 2015. But in the last month of 2015, the acquisition agreement fell through because of opposition from the US Department of Justice. Since then, GE has been looking for buyers for the business to continue its asset adjustment program. GE has already started a plan to divest financial assets, signed an asset swap agreement of approximately $126 billion, and also acquired Alstom's power and grid business for 9.7 billion euros in November last year. This week, GE announced a layoff of 6,500 people in Europe to achieve the goal of reducing spending after integrating Alstom's power and grid businesses. For Haier, although the price is high, it is worth the money. Liang Zhenpeng said that it is difficult for Haier to complete the comprehensive expansion of internationalization without relying on acquisitions. "Previously, Samsung, LG, and Midea also participated in the bidding. The fierce competition may be the most important reason for pushing up the bidding price. Compared with Samsung and LG, the situation has opened up in the high-end market in Europe and America. Haier’s urgency is obvious. Stronger, and compared to the United States, Haier has been using the outsourcing acquisition strategy for international expansion for many years, so Haier is determined to win this time," Liang Zhenpeng said. In 2014, Qingdao Haier achieved a revenue of 88.775 billion yuan, a year-on-year increase of 2.51%, and a net profit of 4.992 billion yuan, a year-on-year increase of 19.59%. According to this calculation, Haier will spend nearly 40% of its revenue when it purchases GE's home appliance business. Here you can find the related products in Optical Cable assembly,, we are professional manufacturer of optical cable assembly, fiber optic cable assemblies, fiber cable assembly, fiber optic cable assembly. We focused on international export product development, production and sales. We have improved quality control processes of optical cable assembly, to ensure each export qualified product. 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