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On July 18, Haier Smart Home (600690.SH, 06690.HK) signed relevant transaction documents with the Swedish Electrolux Group, intending to acquire 100% of the shares of Electrolux South Africa Proprietary Limited ("ESA"), a subsidiary of the Swedish Electrolux Group engaged in water heater business in the South African market, for an enterprise value of 2.45 billion South African rand (equivalent to approximately 980 million RMB) and take over its home appliance business personnel.

Kwikot, the water heater brand under ESA, mainly provides diversified products and solutions such as storage electric water heaters, solar water heaters, multi-energy solutions, gas water heaters and heat pumps.

Haier Smart Home said the transaction is subject to regulatory approval and is expected to be completed in the fourth quarter of 2024.

In response to this, a reporter from Southern Finance Express called Haier Smart Home as an investor. The relevant person responded that the merger and acquisition will not have a particularly significant impact on Haier Smart Home's performance and goodwill, and does not rule out future acquisitions in Africa.

Looking back at history, Haier Smart Home has carried out many mergers and acquisitions: in 2015, it acquired Haier Group's overseas white goods business, including Japan's Sanyo Electric's Japan and Southeast Asian white goods business; in 2016, it acquired General Electric's home appliance business in the United States; in 2018, it acquired New Zealand's Fisher & Paykel; in 2019, it acquired the Italian company Candy.

The merger and acquisition also brought huge goodwill to Haier Smart Home. As of the first quarter of 2024, its goodwill was 24.25 billion yuan.

As of the close of July 18, Haier Smart Home's A shares rose 0.79% to 26.87 yuan per share, with a latest market value of 253.6 billion yuan.

Image source: Nancai Financial Terminal

(Disclaimer: The content of this article is for reference only and does not constitute investment advice. Investors act accordingly at their own risk.)