Whirlpool reports merger with Arçelik will be completed by April 2024
Whirlpool has reported that it expects its merger with Arçelik will be completed by April 2024. It said the transaction will “unlock significant value creation” and expects £250 million annual increased free cash flow.
Only recently the UK CMA opened an investigation into the merger.
This update came as part of Whirlpool’s latest financial report. The company said it achieved a net sales growth of approximately three per cent for its third quarter of the year, driven by strong replacement and builder demand in North America. Meanwhile, the company’s cost reduction actions delivered approximately $300 million of year-over-year benefit in the quarter, and it is on track to deliver over $800 million full-year benefit.
“Our cost take out actions are on track to deliver over $800 million, as expected, delivering approximately $300 million benefit this quarter,” said Jim Peters, Chief Financial Officer of Whirlpool Corporation. “These actions, combined with our value creating portfolio transformation, gives us the confidence to continue to fund innovation, growth, and shareholder returns.”
However, Whirlpool experienced a drop in net sales in EMEA, by 11.1 per cent – it puts this down to the weakened demand in Europe.
With regards the merger with Arçelik, the Europe transaction has been approved by the European Commission, Germany, Austria, and China. However, the UK’s Competition and Markets Authority referred the transaction to phase two. The company expects to close the transaction by April 2024. This transaction is expected to unlock significant value creation, with an expected 150 basis points margin expansion and approximately $250 million annual increased free cash flow post-closing.