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  • October 2015 (Revised September 2016)
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Whirlpool Corp.: Structuring the Deal to Acquire Hefei Rongshida Sanyo Electric Company

By: Benjamin C. Esty and Nancy Hua Dai
  • Format:Print
  • | Language:English
  • | Pages:25
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Abstract

Ian Lee, Whirlpool's VP for North Asia, had been negotiating a possible acquisition with Jackie Jin, the chairman of a leading Chinese appliance manufacturer named Hefei Rongshida Sanyo Electric Company (Hefei Sanyo), for almost six months when suddenly Hefei Sanyo's stock price jumped 25% in the first two weeks of May 2013. The sudden price increase not only increased the likely acquisition price for an ownership stake in Hefei Sanyo, but also meant that Whirlpool had lost the luxury of both time and secrecy. Lee had to quickly decide how to structure a deal that enabled Whirlpool to acquire controlling ownership position (>50%) in the state-owned enterprise (SOE)—something that had not been done before; how much to pay for the stake; and how to ensure commercial, regulatory, and political approval for the deal.

Keywords

Mergers & Acquisitions; Regulation; Cross-border Investment; Brand Names; State-owned Enterprise (SOE); Appliances; White Goods; Consumer Durables; Negotiation; Valuation; Mergers and Acquisitions; State Ownership; Foreign Direct Investment; Brands and Branding; Consumer Products Industry; China

Citation

Esty, Benjamin C., and Nancy Hua Dai. "Whirlpool Corp.: Structuring the Deal to Acquire Hefei Rongshida Sanyo Electric Company." Harvard Business School Case 216-019, October 2015. (Revised September 2016.)
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About The Author

Benjamin C. Esty

Finance
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Related Work

    • October 2015
    • Faculty Research

    Whirlpool Corp.: Structuring the Deal to Acquire Hefei Rongshida Sanyo Electric Company

    By: Benjamin C. Esty
    • October 2015 (Revised September 2016)
    • Faculty Research

    Whirlpool Corp.: Structuring the Deal to Acquire Hefei Rongshida Sanyo Electric Company

    By: Benjamin C. Esty and Nancy Hua Dai
Related Work
  • Whirlpool Corp.: Structuring the Deal to Acquire Hefei Rongshida Sanyo Electric Company By: Benjamin C. Esty
  • Whirlpool Corp.: Structuring the Deal to Acquire Hefei Rongshida Sanyo Electric Company By: Benjamin C. Esty and Nancy Hua Dai
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