Mead Johnson, an American milk powder giant, has reached an agreement with Li Jie Group, a global leader in consumer goods, and Li Jie will acquire Mead Johnson, which will be the largest acquisition in Li Jie's history.
The merger will help both parties to expand their scale and realize diversified operations. Mead Johnson's global distribution can significantly enhance Li Jie's distribution in developing markets. After the merger, China will become its second largest "supermarket".
Lijieshi Group was born in 1823. Headquartered in Britain, it is an international giant that produces fast-moving consumer goods for health, hygiene and home care. The main brands in China market include: health care brands Didi Road, Weiting and Guangming Disc; An Yuejia, a brand of home care, has no stains. Health care products brands Durex, Shuangjian, Secret Lure.
Advantages of enterprise acquisition:
An investment behavior in which an enterprise obtains part or all of its ownership through certain procedures and means. The acquirer can generally complete the acquisition through cash or stock, and gain the actual control of the acquired enterprise. The result of international enterprise merger and acquisition is transnational share participation, acquisition or merger. Historically and now, it has been one of the main forms of international direct investment.
Acquisition of international enterprises is an effective means for investors to quickly realize their foreign development strategy, which can greatly shorten the construction period of investment projects and rapidly expand the production scale. In addition, it has many advantages in capital investment, market development, obtaining key technologies and talents, enhancing the competitiveness of enterprises and ensuring the profit level of enterprises.
After M&A, the business resources of both parties can be reconfigured, and then it is possible to achieve scale operation, expand market share, reduce investment risks and improve enterprise competitiveness.