The proposed merger between Whirlpool Corporation and Turkish appliance giant Arçelik has received a significant boost by being approved by the European Commission.
According to a press bulletin released on 24th October: 'The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of the major domestic appliances business in Europe, Middle East and Africa of Whirlpool Corporation of the US by Arçelik A.Ş. of Turkey. The transaction relates to the supply of major domestic appliances.'
The Commission revealed that it has concluded the transaction 'would not raise competition concerns given in particular the presence of alternative suppliers in the European Economic Area countries where both parties are active. The transaction was examined under the normal merger review procedure'.
While the proposed deal, which was announced in January, may have cleared this milestone, the Competition & Markets Authority (CMA) announced earlier this month that it was concerned the anticipated joint venture could result in a substantial lessening of competition within a market or markets within the UK, and has referred it for an in-depth Phase 2 investigation.
Under the terms of the agreement, Whirlpool will contribute its European MDA business, and Arcelik will contribute its MDA, consumer electronics, air conditioning, and small domestic appliance businesses into the newly formed entity, of which Whirlpool will own 25% and Arçelik 75%.
Pictured from left to right: Fatih Kemal Ebiçlioğlu, consumer durables group president of Koç Holding; Marc Bitzer, chairman and CEO of Whirlpool Corporation; Hakan Bulgurlu, CEO of Arçelik.
