Hisense Group’s overseas mergers and acquisitions were relaunched. This time it aimed at Gorenje, a white power brand based in Slovenia. As a veteran white power company in Europe, Gorenje’s “admirers” in addition to Hisense, Haier and Meiling, and finally Hisense High price wins.
According to a statement issued by Gorenje, Hisense Luxemburg Home Appliances Holdings, a subsidiary of Hisense Group, put forward a 293 million euro offer to acquire 50% of Gorenje's shares. If the transaction is successfully completed, Hisense Group will have a controlling position.
On May 15, related parties of the Hisense Group told 21st Century Business Herald that Gorenje's main business is the kitchen-electricity-related industry, and the main entity participating in the binding bid quotations is Hisense Group Co., Ltd., which is not a listed company Hisense Electric.
In the case of the weak black industry demand of Hisense's main business, Rio Tinto's international market and white electricity market are also one of the ways to solve the overcapacity in the domestic market.
Bid for Gorenje
Why is Gorenje so attractive?
According to its official website, the Gorenje Group's Gorenje Group was established in 1950. It is the largest white household appliances manufacturer in Slovenia and currently holds a 4% market share in Europe. In addition to the parent company Gorenje, the group also has 83 subsidiaries, among which 59 subsidiaries are located overseas. In terms of brand, Gorenje has two major international brands - Gorenje and Asko on the high-end line. In addition, the company has six domestic brands.
In addition to the brand, and more importantly, its production and sales channels are all over Europe. There are production facilities in Slovenia, Serbia, the Czech Republic, Sweden, and the Netherlands. Their main revenue comes from Germany, Russia, the Netherlands, and Scandinavia. .
However, in 2017, Gorenje’s net profit decreased by 84%. Gorenje began to seek strategic partnerships in the fierce appliance competition. According to the reporter’s understanding, as early as this March, Gorenje received 4 non-binding quote letters. The bidders all came from Asia. After the assessment, they left three candidates - Hisense, Haier and Meiling. Finally, Hisense was favored by Gorenje, and Meiling issued an announcement on May 11 stating that it "stops planning major events." , is a sign of withdrawing bids.
The acquisition represents a further internationalization for Hisense Group. In 2017, Hisense Electric's financial report showed that its overseas market sales reached 12.3 billion yuan, an increase of 27% year-on-year, accounting for approximately 40 of the total revenue. %, overseas revenue has become the backbone. Obviously, taking down Gorenje will help Hisense expand its sales channels and open the European market.
At the same time, they also have a meeting point in sports marketing. Gorenje sponsored the Slovenian Nordic Ski Team, the French Football Championship, and Hisense made sports sponsorship in recent years. Last year was the French European Cup sponsor. This year it is the official sponsor of the 2018 Russia World Cup. .
In addition, home appliance industry analyst Cui Jilong analyzed with reporters from the 21st Century Business Herald: 'On the one hand, compared with the two product structures, Hisense has fewer products in kitchen power, and Gorenje can complement products and enrich product lines; On the other hand, Hisense can introduce this European brand to the Chinese market. In the context of consumer upgrading, the kitchen economy is on the rise, which is conducive to the improvement of both white-business businesses.
Plus white
Last year, the black-box market was rather cruel. According to the financial report of Hisense Electric, in 2017, Hisense achieved revenue of 33 billion yuan, an increase of 3.69% year-on-year; net profit attributable to shareholders of listed companies was 942 million yuan, down 46.45% year-on-year. However, Cui Jilong stated that Hisense’s operating profit margin is recovering, and the black market is now Red Sea competition. Although there will be some improvement this year, but the increase will be small, companies will choose to go to white electricity and kitchen electricity.
In fact, Black Power has already deployed white electricity early. Hisense acquired Kelon, and then Gorenje is included under the command of the company; Changhong owns Meiling; TCL’s Hefei Industrial Park started production in 2014, including refrigerators, washing machines, and freezers. In line with the product line, in 2018, TCL’s ice-washing product strategic goal is to plan sales of over 4.5 million units worldwide, and plan to achieve 30% growth year-on-year in the next 3 years; Skyworth will use white power in 2010. In 2014, Skyworth built an industrial park in Nanjing and became its white power production base.
Judging from the data, at present, the white power market is still dominated by Gree, Midea, Haier, etc. According to Zhong Yikang’s statistics, in March 2018, the top five brands of domestic air-conditioned offline channel retail sales were Gree. Midea, Haier, Hisense and Oaks. Among them, Gree accounted for 40.6%, Midea accounted for 27.8%, Haier accounted for 11.3%, and the remaining brand share was less than 5%. China Yikang's data showed that the retail sales of washing machines in the country In the market, in April 2018, the top five retail sales were Haier, Little Swan, Siemens, Panasonic and Midea.
Although it is not easy to increase the share of white electricity, in the current overcapacity of black power, white plus black has become the standard for enterprises. In contrast to black and white electricity, white electricity has stronger tools and black media. Attributes are strong. There are numerous substitutes for the media. The function of the tool is constantly evolving. In contrast, there are fewer substitutes for white electricity.
At the same time, in the field of smart homes, whiteboards cannot be lost, and now the degree of intelligence in white is increasing, and there is a lot of imagination in the embedded process of intelligent systems.