The rapid expansion of China 's economic strength has begun to have an impact on the southern hemisphere. Chinese home appliance giant Haier Group (Haier) decided the acquisition of its rival New Zealand Fisher & Paykel Appliances.
Fisher & Paykel is a New Zealand manufacturer of high-end appliances; products include cooker, refrigerator, washing machine and dishwasher. The 78-year-old Fisher & Paykel in New Zealand has been considered a successful example. In New Zealand appliance market it has a monopoly advantage.
In May 2009, Haier invested in the Fisher & Paykel an equity financing plan, includes the private placement, the shareholders allotment and issuance of three complementary parts. After completion of this program, Haier got 20
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The root causes of economic globalization: first of all, highly developed scientific and technological revolution brought about productivity, which laid the material and technical basis for economic globalization; and second, multinationals have made great progress, economic globalization has established a microscopic basis; thirdly is to achieve a global market economy as economic globalization has laid a foundation system; last but not least, continue to enhance the establishment of three major international economic coordination organization and its role for economic globalization to build the organizational and legal …show more content…
Exactly, Fisher & Paykel is in line with this strategic positioning.
Haier is not beyond the whole industry chain operations, except its products, brands also its main anchor profits. In China, Haier benefit, but overseas, practice telling it, big brand shortcut only acquisitions, although this is a road fraught with risk.
Founded in 1934, Fisher & Paykel, DD has the world 's leading direct drive washing machine motor technology (more quiet, energy-efficient). Fisher & Paykel decision by the end of 2007 global expansion, but the financial crisis hit in 2008, when the company 's huge loss. Reported a net loss of Fisher & Paykel in NZ $ 95.3 million in 2008. While the company 's net profit last fiscal year there are 54.2 million New Zealand dollars. The company had to reduce the debt as a priority.
Either lack of technology, one of lack of funds, Haier and Fisher & Paykel hit it off. Because the shares at NZ $ 100 million or less, according to the laws of New Zealand, the two sides can deal directly, without having to perform examination and approval