The offer made by the Chinese Midea to Investor AB, the main shareholder of the Electrolux, to acquire the Swedish company, seems to be getting closer to close. This was revealed by information gathered from confidential American and Chinese sources (the same ones that had reported Midea's first approaches to Firstonline in 2022) and Bloomberg. This information, recently taken up by Bloomberg, refers to how Investor AB asked Midea what guarantees it is able to give to be able to overcome the tough opposition of the American government to the operation because it would favor the penetration of the US market of the Chinese giant.
Electrolux: Midea accelerates but Wallenberg asks for guarantees
In fact, Electrolux, despite the decision to significantly reduce its presence on the North American market (it is trying to sell a mega factory and laying off 3400 employees), is still very strong thanks also to the Frigidaire brand and the fact that it can count on household appliances clearly more advanced and efficient than those of its competitors. To express the concerns is the United States Foreign Investment Committee which it is becoming admittedly increasingly hostile to the acquisitions of the Chinese giants not only on the domestic market but also in Europe by communicating this tough position, in various ways, to the European governments.
”The billionaire Wallenberg is looking for commitments by the Chinese suitor of Electrolux – reports Bloomberg literally – so that he can give assurances that he will resist if the American regulators were to block the acquisition of the white goods manufacturer”. What, moreover, had already happened in 2014 when Electrolux was prevented from acquiring the General Electric majaps branch of business with a heavy intervention by the American government. That the American government itself worked – surprisingly – to have it sold to the Chinese Haier.
Electrolux: the price goes up
As a result of this news bounce, the B shares of Electrolux and Investor AB meanwhile continued to increase on the Stockholm Stock Exchange, thus increasing the value of the company. And in fact whoever manages the negotiation on the Swedish side – Investor AB which has 18 percent of the company and 30 percent of the voting rights – immediately asked Midea to review the purchase price which appears to be 3,6 billion euros (very low indeed).
The sales crisis pushes Electrolux to tighten the times
Ad speed up the negotiation process – according to the same confidential sources – the bad news arriving from all the markets where, after two years of double-digit increases in sales – a shopping slump which was reflected, as regards the European plants of Electrolux, in stoppages and layoffs in fits and starts, and the closure of the Porcia factory until the end of the month. And not even a recovery in Italian and European demand for large appliances, which began at the end of April, is helping the Electrolux final balances for the first period of 2023. Electrolux's competitors, on the other hand, have recorded a good recovery in orders since the end of April, with a star of the Italian, European and world market: the German BSH, which closed 2022 with excellent results - with the exception of the USA - faithful to defending the value of its brands, investments in R&D and impeccable services. And with a discreet but careful defense of Made in Germany by the government, trade unions and public opinion.
Electrolux and Whirlpool: new closures
As for theagreement between Whirlpool and Arcelik on the basis of which 75 percent of the EMEA branch of the American multinational is sold to the Turkish company, the news arriving is particularly worrying because due to the European drop in demand in recent months, the Melano plant in the Marche region of hobs is shut down until July. Melano is the European center for the production of electric, induction and gas hobs and it is decidedly serious that Whirlpool has taken this decision as it adds to continuous business shutdowns, to layoffs of its sites which add to the decision of Electrolux to close Porcia until the end of the month. No reaction and no summoning of union representatives from Rome, and also the hypothesis - because such it is - of a possible exercise of special powers (the Golden power) from the Executive, arouses unanimous comments: it is a declaration with vague contents and non-existent operational references.
