Whirlpool Corp.: Structuring the Deal to Acquire Hefei Rongshida Sanyo Electric Company Harvard Case Solution & Analysis

Whirlpool's Vice President for its operatings North Asia was negotiating a possible acquisition with Jackie Jin, the chairperson of a leading Chinese appliance manufacturer named Hefei Rongshida Sanyo Electric Company (Hefei Sanyo), for almost six months when unexpectedly 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 cost for an ownership stake in Hefei Sanyo, but also meant that Whirlpool had lost the extravagance of both time and secrecy. Lee had to quickly determine the way to structure a deal that enabled Whirlpool to acquire controlling ownership standing (">>50%) in the state-owned enterprise (SOE)-something that hadn't been done before; how much to pay for the stake; and the best way to ensure commercial, regulatory, and political approval for the deal.

Publication Date: 10/15/2015

This is just an excerpt. This case is about Finance

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