REG - Competition and Mkts - CMA update: Arcelik / Whirlpool
28/09/2023 08:15
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230928:nRSb9747Na&default-theme=true RNS Number : 9747N Competition and Markets Authority 28 September 2023 FOR IMMEDIATE RELEASE: 0700 THURSDAY 28 SEPTEMBER 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) (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. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END MERUWVVROBUKURR