Arcelik Asked by UK Regulator to Offer Remedies Over Whirlpool Deal Concerns
28 Setembro 2023 - 4:25AM
Dow Jones News
By Dominic Chopping
The U.K. Competition and Markets Authority said Thursday it will
refer Arcelik's planned merger of one of its units with Whirlpool's
European major appliances business for an in-depth phase 2 probe,
unless the company offers to remedy competition concerns.
Whirlpool said in January that it had agreed to sell its Middle
East and Africa business to Arcelik.
In addition, Whirlpool said that it was merging its European
major domestic appliance business into a new jointly owned company
with Arcelik, which would contribute its major domestic appliance,
consumer electronics, air conditioning, and small domestic
appliance businesses.
The regulator said it has found that the deal gives rise to a
realistic prospect of a substantial lessening of competition in the
supply of washing machines, tumble dryers, dishwashers and cooking
appliances.
Arcelik is a global supplier of a broad range of home appliances
and consumer electronics, including the Beko and Grundig brands,
while Whirlpool is a supplier of a full line of domestic
appliances, including the Hotpoint and Indesit brands.
The CMA found that, should the deal go ahead, the merged company
will be the largest individual supplier of washing machines, tumble
dryers, dishwashers and cooking appliances - a market worth over
3.8 billion pounds ($4.61 billion) in the U.K.
"Arcelik and Whirlpool's position is particularly strong in the
low to mid-range price categories of these domestic appliances,
where they would face competition from only a small number of
competitors," the regulator said.
"The CMA is concerned that this lessening of competition may
result in higher prices or a reduction in choice or quality for
customers."
The regulator said it found the deal wouldn't give rise to a
realistic prospect of a substantial lessening of competition in the
supply of refrigerators and freezers in the U.K., but it has given
the parties until Oct. 5 to offer a remedy to its other
concerns.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
September 28, 2023 03:10 ET (07:10 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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