The European Commission has given its official approval to the proposed merger between Arçelik and Whirlpool Corporation.
However, in the UK, the deal is still subject to approval by the Competition and Markets Authority (CMA) after it also raised concerns that the creation of Beko Europe B.V. could threaten to significantly reduce competition in the domestic appliance market.
In a daily news bulletin published on October 24, the European Commission announced it had cleared the deal under the EU Merger Regulation, allowing for the acquisition of Whirlpool’s appliance business in Europe, the Middle East and Africa by Arçelik.
After reviewing the proposed merger, the Commission concluded that the transaction would not raise significant competition concerns, especially considering “the presence of alternative suppliers in the European Economic Area countries where both parties are active.”
The CMA has opened an official inquiry into the proposed merger, after both Arçelik and Whirlpool Corporation failed to address its competition concerns before October 5.
Following the European Commission’s decision, a spokesperson from Arçelik said: “Arçelik welcomes the European Commission’s approval of the proposed transaction with Whirlpool Europe. Today’s decision confirms that the combination of both companies’ joint manufacturing expertise, strong supply chains, effective distribution and sales networks, and innovative product pipelines will create value for EU consumers.
“We would like to thank the staff of the European Commission for the constructive approach they have taken in the context of the review.”
A spokesperson from Whirlpool Corporation also added: “We are pleased that the EU has granted unconditional approval for our proposed transaction with Arçelik to create a newly formed European appliance company. This is a key milestone, and it’s important to be clear that the transaction will not proceed to close until the remaining independent regulatory approvals are received.”