Home appliance giant launch | new round | 'Huashan on the sword'

'The Midea Group, Little Swan's current market value is 267.78 billion yuan and 29.411 billion yuan, a total of nearly 300 billion yuan; the merger of the two will help the US group's market value to accelerate across the 300 billion mark.

In 2018, when the market growth rate went down, the wheels of the home appliance giants’ acquisition did not stop.

On the evening of October 23, Midea Group (000333.SZ) announced the plan to absorb the merger of Little Swan (000418.SZ), with a transaction amount of 14.383 billion yuan; a month ago on September 28, Qingdao Haier (600690.SH) Announced that it intends to acquire a 100% stake in Italian Candy Company through a wholly foreign-owned subsidiary for 475 million euros; at the end of August this year, Hisense Group completed the acquisition of Slovenian white power company Gorenje, holding 95% of the latter; It is said that Gree Electric (000651.SZ) has acquired Jinghong Refrigerator, although the listed company has not yet officially announced.

These home appliance giants have shown even more ambitious goals this year. The founder of the US, He Xiangjian, revealed last week that the next goal of Midea Group is to achieve revenues and market capitalization of 500 billion yuan; Dong Mingzhu also presses the accelerator button this year, Gree Electric appliances plans to hit 200 billion yuan in revenue this year, impacting 600 billion yuan in 2023; Hisense Group plans to hit 300 billion in 2025; Haier Group President Zhou Yunjie once mentioned that Haier Group will build two Fortune 500 companies in 2018.

At present, China's home appliance industry's '100 Billion Club' has six members, Midea Group, Haier Group, Gree Electric Appliances, TCL Group, Hisense Group and Changhong Group. These giants have competed from hundreds of billions of dollars to hundreds of billions of impacts. The competition, like those martial arts masters who used to compete in the middle of the mountain, is now ready to climb to the top of the mountain for a new round of 'Huashan Theory'.

The above-mentioned large-scale mergers and acquisitions are an important means for them to become bigger and stronger. Like Midea Group, Little Swan's current market value is 267.78 billion yuan and 29.411 billion yuan, totaling nearly 300 billion yuan; the total revenue of Midea Group in 2017 241.9 billion yuan, 143.7 billion yuan in the first half of 2018, Little Swan's revenue in 2013 was 21.385 billion yuan, and the first half of 2018 was 12.057 billion yuan. The merger will help the US group's revenue, and the market value will accelerate over 300 billion. Great mark.

These mergers and acquisitions also conformed to the intelligent, international industry trend. Previously, Little Swan was the washing machine business platform controlled by Midea Group, but it was limited by the original single-category business model, and it was difficult to grow alone in the future smart home. It is difficult to take advantage of scale in future international competition.

Haier Group has previously acquired Sanyo Electric's refrigerator and washing machine business in Japan and Southeast Asia, New Zealand's Fisher & Paykel, US GE appliances, this time 'the next city', the Italian Candy is also in the arms, is its perfect Europe and An important step in the global market layout. After the acquisition, Haier will place its European headquarters in Bruggio, Italy. Liang Haishan, chairman of Qingdao Haier, said that in the Internet of Things era, Candy applies network technology to traditional home appliances, and Haier’s strategy. In the future, the brand of the future will achieve global coordinated development.

Through continuous mergers and acquisitions, these home appliance giants have turned into a diversified, comprehensive group.

Gree Electric has acquired the Jinghong refrigerator of its national distributor Shengshi Hengxing, which will enable Gree to increase its refrigerator business. The author recently saw at the 124th China Import and Export Fair (Canton Fair) that Jinghong Refrigerator has been Gree exhibition area debut. According to Dong Mingzhu's plan, Gree Electric Appliances will become a global diversified industrial group. Gree's rival enemy, the acquisition of German KUKA two years ago, also quickly established the advantages of the robot field, the future will be transformed into cover warm Air-conditioning, household appliances, robotics and automation, intelligent logistics of multinational technology groups.

In the future, the mergers and acquisitions of the giants will not stop. In the end, these home appliance giants will become China's 'national team', sail to the sea, and the global multinational giants '掰 wrists'. October 24, Qingdao Haier's D shares Formally entered through the entry and listing of the Frankfurt Stock Exchange, becoming the first D-share in the D-share market of CEIBS. Qingdao Haier hopes to use the listing in Germany to enhance global visibility, support business strategy and global deployment, especially in European home appliance market is expanding further.

Compared with global multinational giants such as Samsung, China's leading household appliance companies from the '100 billion army' to the impact of hundreds of billions of targets, is only a stage. When they climbed to 'Huashan', 'On the sword', there are higher peaks Waiting for them. Therefore, compared with the 'extended' M&A expansion, the growth of 'endogenous' through technological innovation and efficiency improvement can not be ignored, so that it can go higher, farther and more stable.

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