And in the end the CMA commission of independent experts, the UK Antitrust Authority, gave the go-ahead – although not yet official – to the transaction Arcelik-Whirlpool. This is an update because the acquisition by the Turkish group of the EMEA sites (Europe, Middle East and Africa) of the American multinational was provisionally judged not to be in conflict with competition and consumer interests. The final decision with the related reasons has in fact been postponed to the date of March 26, already scheduled by the English experts of the government body. “We are very pleased - begins the official statement from Whirlpool - that the CMA has provisionally authorized our proposed transaction with Arcelik to create a new European household appliance company. We believe the transaction it will be good for competition and that the combined entity will be well positioned to deliver value to consumers through attractive brands, sustainable manufacturing, product innovation and consumer services.”
Whirlpool-Arcelik, definitive approval from Antitrust GB by March 26th
The CMA “will issue its final decision by March 26 and with previous approvals from the European Commission and others pending, we expect to close the transaction by April.” The joint would create a European household appliance powerhouse with 6 billion euros in annual turnover and 20.000 employees plus the same number for related industries, giving Arçelik control of 14 production plants owned by Whirlpool.
The GB Antitrust declaration
The statement from the English body actually reveals a different opinion compared to what seemed to emerge from the first reactions of the English, worried - according to them - about possible distortions of competition caused by the possible dominant position of the new company, Beko Europe. The precise arguments of the other party, however, demonstrated exactly the opposite: the English market is dominated by a war on prices and quality (ever lower) triggered by Korean and Chinese competitors and by the trade in search of quotas.
GB: “Competition, no significant problem”
“The operation – the CMA has in fact acknowledged – will not have negative effects on competition and consumers will continue to have a wide range of choice and will not raise significant problems in terms of competition”. The decision, adopted at the end of the Phase 2 investigation, will be formalized by the UK Authority by 26 March 2024.
Whirlpool-Arcelik, how will the Italian government react?
A negative and contrary opinion on the joint venture would have led to a slowdown in the operations intended to carry forward the integration between the two white giants. With serious and very real risks - according to European unions and politicians - for the employment and independence of what is left of the sector in Europe. However, the reaction of the Italian government - which had floated the idea of asserting the golden power to protect Made in Italy - remains to be seen and will have to face the heavy uncertainties regarding Italian household appliance factories. And their necessary adaptation for the digital and green transition.
