DLA Piper advises Haier on divestment

Global law firm DLA Piper has announced its advisory role in a significant transaction involving Haier Smart Home Co. Ltd. The renowned manufacturer of home appliances, which is traded on the stock exchanges in Shanghai, Hong Kong, and Germany, engaged DLA Piper for the partial sale of its shareholding in Haier Appliances (India) P. Ltd. Alongside this, Haier India is set to issue new equity to an investor consortium that includes affiliates of Warburg Pincus and Bharti Enterprises.

Following the finalisation of the deal in March 2026, both Haier and the investor consortium will maintain equal stakes of 49% in Haier India, with the remaining 2% designated for Haier India’s Employee Stock Ownership Plan (ESOP). This strategic move is expected to enhance Haier's position in the Indian market while providing the consortium with a solid foothold in one of the fastest-growing consumer segments in Asia.

Haier Smart Home, established in 1984 and a subsidiary of the Haier Group, has a rich history as the world’s largest home appliance manufacturer. The company has innovated notably in smart home solutions and employs over 100,000 staff worldwide. It boasts several premium appliance brands, including Haier, GE Appliances, and Fisher & Paykel. The introduction of the SANYINIAO brand further exemplifies Haier's commitment to revolutionising the smart home technology landscape.

Since launching its operations in India in January 2004, Haier India has showcased a diverse product line, including refrigerators, air conditioners, washing machines, and microwave ovens. Remarkably, the company has garnered a compounded annual growth rate of 25% over the last seven years, underlining its expanding influence in the market.

A cross-practice, multi-jurisdictional team from DLA Piper facilitated the transaction, with AZB & Partners serving as co-counsel on Indian legal matters. James Chang, Corporate Partner at DLA Piper, highlighted the importance of this deal, saying “This landmark transaction demonstrates the deep strengths of DLA Piper’s Pan Asia corporate M&A and private equity practices, and our ability to deliver exceptional results for leading global businesses like Haier, in an ever evolving business landscape across East and South Asia.”

Supporting James Chang in the M&A aspects were Of Counsel Shuting Lu, Consultant Hao Guo from Beijing, and Consultant Yue Wang from Shanghai. The team included Head of Corporate Stewart Wang and Associates Sophia Sun and Jenny Wang from Shanghai Kaiman Law Firm.

In terms of intellectual property, Partner Horace Lam, Of Counsel Asher Xiuyuan Yan, and Senior Consultant Shuting Zhang provided insight, while competition law advice from Singapore-based partner Nathan Bush was instrumental. Further corporate support was offered by a robust team of DLA Piper professionals across various specialisms from cities including Beijing, Hamburg, London, and Hong Kong, reflecting the firm's wide-reaching expertise in international law.

This strategic divestment and the equity issuance fortify Haier's foothold in the rapidly growing Indian market while enabling new investment opportunities for stakeholders involved