 |
|
 |
 |
 |
 |
 |
 |
 |
|
|
 |
0 Comment(s)
Print
E-mail China.org.cn, November 14, 2012
Following the recent completion of Chinese home appliance giant Haier Group Co. Ltd.'s takeover of New Zealand's Fisher & Paykel Appliances, Haier hopes to maximize Haier's gains from the deal, Group CEO Zhang Ruimin said in an exclusive interview with China.org.cn.
![Haier Group CEO Zhang Ruimin. [China.org.cn]](http://images.china.cn/attachement/jpg/site1007/20121114/00016c42b25a120d822502.JPG "Haier Group CEO Zhang Ruimin. [China.org.cn]") |
|
Haier Group CEO Zhang Ruimin. [China.org.cn] |
Haier hopes that the merger will have a cascading effect on returns. The acquisition of the top New Zealand brand will allow Haier to expand into a wider high-end market; meanwhile, Haier plans to use its own resources and network to augment Fisher & Paykel's global coverage, Zhang said.
"In the past, an acquisition would expect to reach a 'one plus one more than two' effect —a so-called additive effect," Zhang said. "We hope to maximize Haier's gains from the deal and create a ‘multiple effect' on profits."
On Nov. 6, Haier said it had acquired at least 90 percent of Fisher & Paykel Appliances Ltd. The well-known New Zealand brand, which was founded in 1934 in Auckland, has seen a sag in revenues in recent years in part due to management difficulties. The acquisition is Haier's second big move in two years, and is seen as a major step towards brand diversification.
Zhang said that Haier has considered making additional acqusitions in the past few years, but the company has not always had consensus about how to fully utilize the benefits of such deals.
Fisher & Paykel is known as an innovative, technology-driven brand with strong local talent. Haier will retain the same team in New Zealand and devote more resources towards developing its R&D group, Zhang added.
In July 2011, Haier acquired Japan's SANYO Electric Co. Ltd for US$128 million and took over SANYO Electric's consumer appliance businesses in Japan, Indonesia, Malaysia, the Philippines and Vietnam, reaping huge profits in the subsequent year.
Go to Forum >>0 Comment(s)