Chinese home appliances maker Haier has announced that the company has become a major shareholder of the New Zealand's Fisher & Paykel Appliances via an equity financing program.
Under this program, Haier will invest USD49 million to USD51 million to acquire a 20% stake in Fisher & Paykel Appliances. Upon the completion of the investment, Haier will gain two seats in the board of directors of the company.
By market share, Fisher & Paykel Appliances is the largest home appliances company in New Zealand with market share of 55% in the country and it has 18% market share in Australia. Haier's investment in Fisher & Paykel Appliances is expected to improve the financial condition of the company, which currently suffers losses.
However, with manufacturing plants in New Zealand, the United States, Italy, and Thailand, Fisher & Paykel Appliances has an annual production capacity of about 1.2 million sets of high-end home appliances products, which are sold to more than 80 countries and regions around the world. Therefore, the cooperation between the two companies will also help Haier enhance its competitiveness in the world's high-end home appliances market.
In addition, the two sides have signed a cooperative agreement to complement each other's technical advantages, share market and supply chain resources, and enhance after-sale servicers. With the cooperation, Haier will franchise and distribute home appliances products of Fisher & Paykel brand in China while Fisher & Paykel will franchise and distribute home appliances products of Haier brand in Australian and New Zealand.
