Haier to Buy SANYO, Positive Synergy Effects Predicted

On July 28, 2011, Haier Group and SANYO Electric Co., Ltd. signed a MOU at the Haier Group Center Building regarding Haier’s intention to buy SANYO’s washing machine, refrigerator and other business in Japan and Southeast Asia. The business to be acquired mainly covers East and Southeast Asia, including Japan, Indonesia, Vietnam, Philippines and Malaysia. The terms and conditions are still under negotiation, and the final agreement is expected to be signed in the end of September this year.

Upon completion of the acquisition, Haier Group will have two R&D centers, four manufacture bases and six regional localized marketing structures in Japan and the Southeast Asia. Haier will adopt a dual-brand strategy in Japan with “Haier” and “AQUA”, while in Vietnam, Indonesia, Philippines and Malaysia, Haier will simultaneously use the “SANYO” brand for a specified period of time besides "Haier" brand.

Apart from the expansion of Haier’s bases in the Asia-Pacific region and the diversification of its product lines, industry counterparts are more optimistic about the synergy effects of this acquisition. For instance, Haier can obtain the leading intellectual property rights concerning washing machines and refrigerators; the right to use the SANYO brand can improve Haier’s market presence in target regions and ensure a smooth transition and sustainable development of the target companies; Haier can make it to the top 5 in Philippines and Indonesia markets and become No.1 in Vietnam, thus achieving a leapfrog development; as the AQUA washing machine enjoys a better brand image than Panasonics’, it will help Haier's high-end washing machines open the Japanese market quickly, improve the overall image of Haier in Japan, and enhance its competitiveness though expansion of brands and product structures.