The Competition and Markets Authority (CMA) has announced that it has officially given the go-ahead to the proposed deal between Arçelik and Whirlpool.
It referred the deal to a Phase 2 review after initially identifying concerns which warranted further investigation during its Phase 1 enquiry. Since then, an independent CMA panel has gathered and analysed a wide range of evidence in order to assess the potential impact of the manufacturer merger.
Martin Coleman, Chair of the independent expert panel conducting the investigation, said: “We conducted a thorough investigation into this deal, which included extensive engagement with customers, competitors, and others. We found that the deal may not be expected to harm competition, with shoppers continuing to benefit from a wide range of options.
“As such, we believe this deal should be allowed to proceed.”
This news comes only a couple of weeks after the CMA provisionally cleared the transaction, saying it found that the deal “is not likely to raise significant competition concerns”.
The CMA said the latest evidence showed that while Arçelik and Whirlpool both have strong market positions, they will continue to face “significant competition” from other suppliers.
The investigation panel found that the competitive landscape has changed “considerably” in recent years and continues to do so…
It said: “Whirlpool’s market position in MDAs has significantly declined over the last decade, and it is likely that its European MDA business will be fundamentally different in the future. At the same time, suppliers such as Haier Group and Hisense have gained market share, and it is likely that they will continue to expand.”
Arçelik and Whirlpool are two of the largest suppliers of MDAs in the UK. Arçelik operates primarily under the Beko, Blomberg and Grundig brands, and Whirlpool supplies MDAs primarily under the Indesit and Hotpoint brands.
