Electrolux agreed to buy GE Appliances for 3.3 billion US dollars

Sep 9, 2014 11:14 IST

The Swedish company Electrolux agreed to buy a home-appliances unit of General Electric Company of Louisville for 3.3 billion US dollars in cash. The agreement was done on 8 September 2014. This acquisition would enable Electrolux to compete with Whirlpool in US Market.
The combination of Electrolux and GE's appliance businesses would represent a combined market share of over 26% of the American major appliances market according to data from consultancy Euromonitor. It will outdistance Whirlpool, which commands over 25% of the US market.
Electrolux said it would continue to use the GE Appliances brand.


About the GE-Electrolux Deal
• GE is selling all the smaller businesses as it is concentrating on its heavy industrial businesses such as jet engines, power turbines, and oil-sector services.
• The deal comes amid a wave of consolidation among makers of home appliances such as dish washers, washing machines, and cookers.
• The GE deal gives the Swedish company a great market position in North America with a combined market share of 40%, on par with that of market leader Whirlpool.
• Electrolux gains economies of scale increasingly important in the appliance sector.
• The purchase of GE's Appliance's business - including cookers, refrigerators, air conditioners and water heaters - will more than double Electrolux's sales in the US market from the 31.9 billion crowns (4.5 billion US dollars) it had in 2013.
• With this deal Electrolux will get access to both North and South America in a very good way and will become very strong in all of the Americas.

 

Quick Digest

Who: Electrolux

Where: Louisville

What: agreed to buy a unit of GE

Is this article important for exams ? Yes16 People Agreed
Read more Current Affairs on: Electrolux , GE Appliances , dollars

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