Electrolux AB agrees to buy GE

electrolux-logo-1024x136ge-logo-retroThis purchase is the Stockholm based company’s biggest yet! This deal makes Electrolux a major player in synergies.  Bringing together top brands such as Hotpoint, Frigidaire and Zanussi.  It is estimated that the Companies annual revenue is expected to exceed 22.5 billion. The Swedish company’s chief executive, Keith McLoughlin, said in an interview that a chief attraction of the deal is GE’s top position selling to home builders in the U.S. Electrolux has only a small share of that market and has been trying to expand it.  Electrolux will retain the GE brand, positioning it as a midrange brand between the mass-market Frigidaire and high-end Electrolux models.  Dominating the North American market for appliances;  Electrolux will be going “head to head” with Whirlpool, making it so that each controls around 40% of the “white goods” industry in that region. It is reported that GE wants to focus on the very profitable industrial areas of aviation and gas moving ahead, and this sale helps promote that long held ambition of the company. On a side note, Whirlpool agreed to pay more than $1 billion this summer to acquire a majority stake in the Italian company Indesit. The purchase would roughly double Whirlpool’s business in Europe.  Electrolux will be a more vigorous competitor. The transaction is expected to close next year. Electrolux expects to extract $300 million in annual cost savings from combining the businesses. All in all, the immense complexity of the appliance world has now changed.

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