Whirlpool Corporation reported that it expects to close in April 2024 on a series of agreements with Turkish multinational company Arçelik A.Ş («Arcelik«).
Arcelik manages several brands, including its namesake brand «Arçelik» and other brands such as Beko, Grundig and Blomberg.
In particular, Beko is a well-known brand in the field of household appliances and consumer electronics.
On January 16, 2023, Whirlpool entered into a contribution agreement with Arcelik in line with Whirlpool’s portfolio transformation.
Under the terms of the agreement, Whirlpool will contribute its European large appliances business, and Arcelik will contribute its European large appliances, consumer electronics, air conditioning and small appliances businesses to the newly formed entity of which Whirlpool will own 25%. and Arcelik 75%, subject to an adjustment mechanism based on certain financial matters.
Moreover, Whirlpool subsequently reached an agreement for the sale of Whirlpool’s business in the Middle East and Africa to Arcelik.
These transactions affect businesses that are collectively referred to as the European large appliances business and were classified as held for sale in the fourth quarter of 2022.
Whirlpool will retain ownership of its KitchenAid small appliances business in the EMEA geographic division, which covers Europe, the Middle East and Africa.
The transactions are expected to close in April 2024 and include nine Whirlpool production plants located in Italy, Poland, Slovakia and the United Kingdom, as well as two Arcelik production facilities in Romania.
Whirlpool
The European transaction is subject to certain closing conditions, including regulatory approvals from the European Commission, Germany, Austria and China, which have been received, and the United Kingdom, which remains.
On February 8, 2024, the U.K. Markets and Competition Authority (CMA) provisionally cleared the transaction.
Appliances
The CMA is also expected to issue its final decision by March 26, 2024.
Whirlpool is a U.S. multinational company that specializes in the manufacture and marketing of household appliances.
This company manufactures products in 10 countries and trades products in almost every country in the world.
