Huayi Compressor Barcelona: Post-Acquisition Challenges
(8 pages of text)
Huayi Compressor Barcelona, S.L. was founded in 2013 when Huayi Group (Huayi), a Chinese state-owned enterprise, acquired Cubigel Compressors, S.A., a bankrupt Spanish industrial enterprise. While labour complications and other difficulties developed during the acquisition process, Huayi successfully managed the transition in May 2013. Despite this initial achievement, challenges related to the recovery of productivity, markets, and profitability continued. In January 2014, the general manager of Huayi Compressor Barcelona, S.L., who managed the transition, received a request to return to Huayi headquarters in Sichuan, China. From his Barcelona office, he grew concerned about several challenges: Who would be the right successor for his position? What strategy did Huayi need to consolidate its internationalization process? What knowledge could he transfer to China for future international strategies?
The case is suitable for business training programs at the master’s level, including MBA and executive education programs. It is also appropriate for undergraduate business students. The case is suggested for courses such as international business, human resource management, and strategic management. After analyzing and discussing the case, students should be able to
- understand the dilemmas a company faces when planning and implementing an international acquisition, in particular, when a multinational from an emerging country enters a developed country;
- appreciate the basic tensions that arise after acquisition when managing an international subsidiary in a different culture; and
- analyze the strategic tensions between global and local integration for an emerging market multinational in its global expansion process.
Spain; China, Medium, 2013
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