Merge background
Mattel is an old household appliance enterprise in the United States, with a history of over 65,438+000 years and a value as high as 4.7 billion US dollars. Its main business is to produce vacuum cleaners, washing machines and refrigerators. It is the third largest enterprise in the US home appliance market, second only to Whirlpool and Lennox. Due to the high production cost of Mattel, its performance has gone from bad to worse in recent years. In 2005, Mattel wanted to buy the company.
Haier's concern about this acquisition is related to its early entry into the United States, and Mattel's marketing network in the local market in the United States is one of the most valuable advantages.
Reason for failure:
1) lacks public relations strategy.
Mattel has nearly 20,000 employees. However, Haier does not regard communication with employees as one of its important tasks.
Josef Blu-brooman, an expert in the field of international communication, made this pessimistic prediction when Haier's bidding case was still optimistic in China: during the bidding process, Haier exposed the lack of communication and public relations capabilities, which will make it more difficult for China enterprises to acquire in the future.
When asked how to contact the management of Haier, the spokesman of Haier USA only left "I don't know" and nothing else. It was Haier (USA) that refused an interview with DesMoinesRegister (local media in Iowa where Mattel is located), thus sending a negative signal to the local people. This move caused dissatisfaction among local workers in Mattel. Trade unions are a force to be reckoned with in cross-border acquisitions. Without the support of trade unions, Haier's bidding is naturally difficult.
Brooman Field believes: "If it is correctly explained to the American public, I think the public will support China's joining. But the problem is that such a' correct explanation' almost never existed. China failed to use public relations strategy to form American public opinion in his favor. "
2) The bid price is too high.
Since Whirlpool, the largest white goods manufacturer in the United States, joined the Mattel bidding war and put forward the purchase price of $654.38+$35 million, the price has been rising continuously. Haier chose to quit. Whirlpool raised the purchase price three times and was finally affirmed by Mattel, with a total offer of $2.3 billion.
3) Integration faces difficulties.
Eric Bosshard, an analyst at FTN Midwest Securities Company, believes that although Haier is interested in Mattel, it may find it too difficult to integrate Mattel during the due diligence process, so it has to give up halfway. If Haier buys Mattel, it will face the problem of promoting two major brands in the United States and inject funds into promoting Mattel brand.
4) involving political factors
Although Haier is currently privately managed, it is still controlled by the state. In various media, Haier is described as a dangerous foreign predator, eager to snatch valuable assets from American buyers. The merger of PetroChina, which happened at the same time as the merger of Haier, was also considered as a political factor, which became another reason for the failure of the acquisition.