Home Appliance Industry Raises Three Overseas Chinese M&A Companies to Target a Company

Haier, Hefei Meiling and Hisense also eyeed an overseas company at the same time.

In a statement, Slovenian appliance maker Gorenj stated that the company has received three offers, from Haier, Hefei Meiling and Hisense, three Chinese companies.

Overseas mergers and acquisitions are not new for home appliance manufacturers who frequently go out to sea, but the three Chinese companies have launched a series of big bids for acquisitions, which has made the development of the industry attract the attention of the public.

However, at present, Meiling and Hisense have already responded, Meiling said that they gave up their bids, and Hisense Electric stated that it is its own major shareholder, Hisense Group (referred to as Hisense in short).

It is reported that after fierce competition, Hisense won with a maximum offer of about 293 million Euros and will announce the acquisition of Gorenje within 15 days. Hisense Group is not right about this news. But close to the sources of Hisense revealed: 'There are indeed wins. Grab. '

The main business of the Gorenje company in Slovenia is the kitchen-electricity-related industry. The acquisition of it by Hisense Electric, which is mainly engaged in color TV, seems to be of little significance. Hisense Group, which is trying out its diversification, can get in the kitchen if it takes it into the bag. Electricity, white electricity further expansion.

Founded in 1950, Gorenje employs 11,000 employees. It operates white goods sales centers in Eastern Europe and Germany. The company manufactures more than 3.5 million large appliances each year, of which 80% are sold under corporate brand names. In addition to household appliances, Gorenje also produces ceramics, kitchen and bathroom furniture, and provides services in the fields of energy, ecology and trade.

For Hisense Group, if the acquisition is completed, it may be able to open up new space faster in the European market.

The European market is a piece of 'fat' that household electrical appliance manufacturers, including Hisense, have been trying to seize in recent years. Hisense Group is trying to pass the European market to convey its high-end brand image through a series of actions.

It is understood that Matsushita Corporation of Japan currently holds a 10.7% stake in Gorenje listed companies. Some market analysts believe that because Panasonic has implemented its global strategic transformation in recent years, it has largely divest its home appliance assets that it operated earlier. This acquisition of Panasonic or Acted as a capital broker between Chinese companies and Gorenje.

Gorenje did not disclose the specific bid price, but industry analysts believe that the highest-priced current Hisense Group proposes a holding-contracted acquisition condition price of EUR 12 per share, which is equivalent to 1.65 times the GRV 9 closing price premium. Estimated price of the offer, its total market value will jump to 347 million US dollars.

In recent years, China's household electrical appliance companies have frequently acquired overseas. For example, Skyworth acquired German television maker Metz, Hisense acquired Sharp TV, which is the father of LCD, and North American business, Haier purchased USD 5.4 billion in assets related to GE appliance business. , Midea Group spent EUR 4 billion to acquire German robot company KUKA.

It can be seen that Chinese household appliance companies entering the global market through overseas mergers and acquisitions is a powerful way to expand the scale. However, attention should be paid to overseas mergers and acquisitions. There is also a risk that home appliance companies must be optimistic about the quality of the standard and the estimated integration effect.

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