Deal between Arçelik and Whirlpool gets provisional go-ahead
“Consumers will continue to benefit from a wide range of choice for MDAs,” says the CMA
The Competition and Markets Authority (CMA) has provisionally cleared the anticipated merger transaction between Arçelik and Whirlpool. It said it found that the deal “is not likely to raise significant competition concerns”.
Last October, the UK’s competition watchdog referred the transaction to phase two as part of an in-depth investigation. However, in November it was reported that part of the transaction had been approved by the European Commission and Whirlpool said that it expected the deal to close by April this year.
The CMA has since said that although Arçelik and Whirlpool both have strong market positions, they will continue to face “significant competition” from other suppliers, indicating that this proposed merger would in fact not cause any issues within the market.
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.”
Martin Coleman, Chair of the independent panel conducting the investigation, said: “Our provisional view is that following this deal consumers will continue to benefit from a wide range of options for MDAs.”
Arçelik acknowledged the CMA’s provisional findings recognising the highly competitive nature of the UK home appliance market…
In a statement the Turkish manufacturer (parent company of the Beko, Blomberg and Grundig brands) said: “The new company will be good for UK consumers as it will offer a wider range of products and better access to high quality, innovative, energy-efficient, and trusted lifestyle products and solutions.”
The CMA will now consult on its findings and listen to any further views before reaching a final decision.
