M&A in China: Getting Deals Done, Making Them Work
BCG examines China’s M&A environment and offers a game plan for successful deal-making in the world’s second-largest economy.Read the article
For many multinational corporations, buying a Chinese company carries particular risks. Such was the case when Whirlpool made a complex deal to buy a majority stake in Hefei Sanyo, which was partially government owned. Compared to Whirlpool’s business in China, Hefei Sanyo was more than triple its size. Despite the challenges, the deal created a multinational company with a true, locally capable team in China.
Whirlpool was tackling a number of complexities when looking to acquire Hefei Sanyo in China:
Whirlpool turned to BCG for end-to-end support during the acquisition. Together, the team:
Whirlpool successfully completed the acquisition in October 2014. Its presence in China is now a profitable, more than $1 billion business.