MIDEA GROUP Announces Takeover Bid for Sweden’s Electrolux
May 14, 2023
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On May 9, Midea Group ($SZSE:000333), a Chinese home appliance giant, announced that it had submitted an initial takeover bid for the Swedish-based appliance maker, Electrolux. Midea Group is a leading Chinese manufacturer of consumer electronics and home appliances, and is listed on the Shenzhen Stock Exchange. This move could also help Midea Group to diversify its product range, as Electrolux has a wide range of products that could be added to Midea Group’s existing lineup. This move is seen as a major step towards Midea’s goal of becoming one of the world’s largest home appliance manufacturers.
This would be a major achievement for the company and could potentially place it among the top players in the global home appliances market. The takeover bid is still in the preliminary stages and no official announcement has been made yet. It remains to be seen if this acquisition will be successful and bring Midea Group closer to their goal of becoming a major global appliance maker.
Stock Price
On Tuesday, MIDEA GROUP announced that it had submitted a takeover bid for Sweden’s Electrolux. The news sent shockwaves through the market as MIDEA GROUP is the world’s largest appliance manufacturer and the acquisition of Electrolux would give it a strong foothold in Europe. The announcement saw MIDEA GROUP’s stock open at CNY54.8 and close at CNY54.8, down by 0.4% from prior closing price of 55.0. Despite the minor drop in stock prices, the long-term effects of the takeover bid could prove to be beneficial for MIDEA GROUP as it further expands its global presence. The takeover bid is currently being evaluated and the outcome is still pending.
However, should the bid be successful, analysts believe that MIDEA GROUP will be able to leverage Electrolux’s extensive portfolio and presence in Europe to increase its market share even further. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Midea Group. More…
| Total Revenues | Net Income | Net Margin |
| 351.41k | 30.42k | 8.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Midea Group. More…
| Operations | Investing | Financing |
| 35.95k | -27.07k | -10.37k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Midea Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 441.09k | 279.64k | 21.7 |
Key Ratios Snapshot
Some of the financial key ratios for Midea Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.2% | 11.2% | 10.9% |
| FCF Margin | ROE | ROA |
| 8.1% | 16.2% | 5.4% |
Analysis
At GoodWhale, we recently conducted an analysis of MIDEA GROUP‘s wellbeing. Specifically, our analysis revealed one risk warning in the income sheet. To access this detailed information, become a registered user with GoodWhale. This will allow you to review our findings and make the best decision for your investments. With our Risk Rating and detailed analysis, you can make the most informed decisions as you enter the world of international finance. More…
Peers
The competition between Midea Group Co Ltd and its competitors such as Hisense Home Appliances Group Co Ltd, Changhong Meiling Co Ltd, and Johnson Controls – Hitachi Air Conditioning India Ltd is intense. All of these companies are vying to be the top player in the market of home appliances and air conditioning, making it a highly competitive environment. Each company is striving to outdo the other, offering innovative solutions and cutting-edge technology.
– Hisense Home Appliances Group Co Ltd ($SZSE:000921)
Hisense Home Appliances Group Co Ltd is a Chinese appliance manufacturer specializing in the production of home appliances such as washing machines, refrigerators, air conditioners, and televisions. With a market cap of 19.28B as of 2023, the company is well positioned to remain competitive in the industry and capitalize on emerging markets. In addition to its sizable market cap, Hisense Home Appliances Group Co Ltd boasts a strong return on equity of 19.38%, indicating that the company is efficiently utilizing its capital and generating high returns for shareholders.
– Changhong Meiling Co Ltd ($SZSE:000521)
ChangHong Meiling Co Ltd is a Chinese electronics manufacturer that produces refrigerators, air conditioners, washing machines, microwave ovens and other appliances. The company has a market cap of 4.23 billion dollars as of 2023, reflecting its financial stability and success. The return on equity (ROE) of 2.29% indicates that the company is achieving higher returns on its investments than the average for other companies in the same industry. ChangHong Meiling Co Ltd is a well-established company with a long history of producing quality products that meet the needs of consumers.
– Johnson Controls – Hitachi Air Conditioning India Ltd ($BSE:523398)
Based in India, Johnson Controls – Hitachi Air Conditioning India Ltd is a global leader in the air conditioning and climate control business. With a market cap of 30.7 billion as of 2023, the company has seen considerable growth in its market value over the years. Johnson Controls – Hitachi Air Conditioning India Ltd has a return on equity (ROE) of -1.38%, indicating that it is not generating profits from its investments. The company offers a variety of air conditioning solutions, ranging from residential to commercial, and its products are used in homes, offices, hospitals, and other public areas. The company is committed to providing quality solutions to its customers and maintaining its position as a leader in the air conditioning industry.
Summary
Midea Group, a Chinese home appliance giant, has confirmed that it has made an initial offer to acquire Sweden-based Electrolux. Such a move would be in line with Midea Group’s expansion strategy of acquiring companies that can provide access to new markets and technologies. From an investment standpoint, it would likely be a wise move for the company to diversify its portfolio and continue to increase its global presence. As such, Midea Group’s stock could be a worthwhile investment for those looking for long-term growth.
Additionally, if the acquisition is successful, investors may stand to benefit from increased revenue and earnings as well as potential cost synergies. Therefore, it is important to closely monitor Midea Group’s progress in the coming months.
