The European Commission has approved the takeover of Whirlpool’s large home appliances business in Europe, the Middle East and Africa by Turkish company Arcelik. According to the EC, the merger “does not raise competition concerns.”
The European Commission received the notification of the concentration on September 18 this year. The decision on this matter was made on Monday. The European Commission announced in a statement that it had approved the acquisition of exclusive control over the operations of Whirlpool Corporation in Europe, the Middle East and Africa by Arcelik AS from Turkey.
Arcelik and Whirlpool merger
“The Commission concluded that the transaction does not raise competition concerns, in particular due to the presence of alternative suppliers in the European Economic Area countries where both parties operate. The transaction was examined under the normal merger control procedure,” we read.
Reuters reported that the merger would create a new entity composed of the European businesses of Arcelik and Whirlpool. “Arcelik will hold 75 percent of the shares in the company, and Whirlpool will hold the remaining 25 percent.” – added.
Arcelik owns the following brands: Beko, Blomberg, Arctic, Altus, Grundig, Flavel, Leisure, Zenith and Elektrabregenz. Whirlpool Corporation, in addition to the Whirlpool brand, includes: Ariston, Indesit, Hotpoint, Ignis, Privileg, Polar, Laden and Bauknecht.
The British antitrust authority announced on October 11 this year that it had decided to initiate detailed proceedings regarding the planned merger.
The office noted that if the transaction was completed, the new entity would be the largest supplier of washing machines, dryers, dishwashers and other household appliances in the UK. It was reported that the market is worth over £3.8 billion.
Main photo source: Shutterstock