Haier’s Acquisition of GE Appliances

Abstract

On January 15, 2016, Haier Group, China’s leading home appliances maker, announced that it was going to acquire General Electric’s Appliances unit for $5.4 billion. The deal was reached shortly after GE withdrew from an earlier agreement with Swedish appliance company Electrolux with a purchase price of $3.3 billion. This case analysis will explore the motives of Haier’s acquisition move, benefits the acquisition will likely bring to Haier, as well as potential challenges. It also includes an analysis of the US and global home appliances markets, with in-depth analysis of key competitors in this changing market.