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REG - Competition and Mkts - CMA update: Arcelik / Whirlpool

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RNS Number : 9747N  Competition and Markets Authority  28 September 2023




Home appliances merger could reduce choice for consumers


The CMA has found that Arçelik's anticipated purchase of Whirlpool's major
appliances business in Europe could reduce choice in the supply of washing
machines, tumble dryers, dishwashers and cooking appliances.


The transaction will be referred for an in-depth Phase 2 investigation unless
Arçelik offers undertakings to address the Competition and Markets
Authority's (CMA) concerns.


Arçelik A.S.(Arçelik) is a global supplier of a broad range of home
appliances and consumer electronics, including the Beko and Grundig brands.
Whirlpool Corporation (Whirlpool) is a supplier of a full line of domestic
appliances, including the Hotpoint and Indesit brands.


The CMA found that, should the deal go ahead, the merged company will be the
largest individual supplier of washing machines, tumble dryers, dishwashers
and cooking appliances - a market worth over £3.8 billion in the UK.


Arçelik and Whirlpool's position is particularly strong in the low to
mid-range price categories of these domestic appliances, where they would face
competition from only a small number of competitors.


The CMA is concerned that this lessening of competition may result in higher
prices or a reduction in choice or quality for customers.


Sorcha O'Carroll, CMA Senior Director of Mergers said:


"The proposed deal will combine 2 major providers of home appliances in the
UK, meaning that well-known brands such as Hotpoint, Indesit and Beko will sit
under one owner. We're worried that this could reduce the choice of suppliers
available to retailers and ultimately to shoppers.


"As competition from other suppliers in the low-mid price range appears to be
limited, we are concerned that this tie-up could leave people paying more or
receiving lower quality products. Unless Arçelik offers a solution to address
our concerns, we'll move to an in-depth investigation."


More information can be found via the Arçelik
(https://www.gov.uk/cma-cases/arcelik-slash-whirlpool-emea-merger-inquiry) /
Whirlpool case pag
(https://www.gov.uk/cma-cases/arcelik-slash-whirlpool-emea-merger-inquiry) e.


Notes to editors:

1.   Arçelik agreed to acquire Whirlpool's EMEA Major Domestic Appliances
Business pursuant to a Contribution Agreement dated 16 January 2023, under
which Arçelik will set up a new standalone business, Beko Europe B.V.

2.   The CMA found that the transaction gives rise to a realistic prospect
of a substantial lessening of competition (SLC) as a result of horizontal
unilateral effects in the supply of washing machines, tumble dryers,
dishwashers and cooking appliances in the UK.

3.   The CMA found that the transaction does not give rise to a realistic
prospect of a substantial lessening of competition in the supply of
refrigerators and freezers in the UK.

4.   The parties have until 5 October 2023 to offer an undertaking which
might be accepted by the CMA to address the SLCs.

5.   For more information, journalists should contact the CMA press office
by email on press@cma.gov.uk (mailto:press@cma.gov.uk)  or by phone on 020
3738 6460.

6.   All enquiries from the general public are directed to the CMA's General
Enquiries team on general.enquiries@cma.gov.uk
(mailto:general.enquiries@cma.gov.uk)  or 020 3738 6000.


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