Chinese Midea Group has confirmed that the company has made a takeover approach for Swedish competitor Electrolux.
“A deal is being discussed, but no decision has been made yet,” the investor relations department at Midea said. A public relations officer at Electrolux China has declined to comment.
The Chinese firm has made a preliminary approach in recent weeks about a possible deal, but Electrolux has not been receptive to the proposal so far, according to Bloomberg.
Global home appliance giants have been moving production to European and American countries, which is why Chinese companies like Midea, will have to improve their global industrial chain positioning.
Electrolux owns the Electrolux, AEG, Zanussi, Frigidaire, Eureka, Flymo, and Husqvarna brands. It ranks fourth with around a 10 percent share of the western European market, according to a research report.