Date
17 August 2017
GE believes the unit could be more valuable as part of a global appliance group such as Electrolux. Photo: Bloomberg
GE believes the unit could be more valuable as part of a global appliance group such as Electrolux. Photo: Bloomberg

Electrolux targets GE appliance business

Electrolux, the world’s No. 2 maker of home appliances, is in talks to buy General Electric’s household appliance business, Reuters reported Friday.

GE said it is evaluating options for the home appliance business and has had discussions with the Swedish group and other interested parties.

Electrolux is seeking to increase its foothold in North America which is growing faster than its other main markets in Europe.

New York start-up Quirky, GE’s partner in a smart-home product venture, is also interested and is working with an investment bank to put together a bid, the report said, citing a person familiar with the matter.

GE’s home appliance business, which sells products under the GE Monogram, GE Cafe and Hotpoint brands, could be worth between up to US$2.5 billion.

The US diversified conglomerate is trying to sell its home appliance unit as chief executive Jeffrey Immelt seeks to allocate resources to higher-growth businesses.

The unit is almost exclusively focused on the US market and lacks a global scale and could be more valuable as part of a global appliance group such as Electrolux, sources said.

Electrolux sells under its own name and under such brands as Frigidaire, AEG and Zanussi.

– Contact us at [email protected]

RA

EJI Weekly Newsletter

Please click here to unsubscribe