Chinese Midea drops pursuit of Swedish Electrolux

Midea Group Co. has dropped its pursuit of Electrolux AB due to the Swedish firm being unreceptive to a deal. The two companies have been discussing terms of a potential deal since Midea made a preliminary approach in the spring.

The Chinese appliance group wasn’t able to fulfill all the demands from Electrolux and its top shareholder Investor AB. This is according to people with knowledge of the matter.

Investor AB holds a nearly 18% stake in Electrolux and 30% of its voting rights.

Shares in Electrolux jumped in early May after Bloomberg News reported Midea’s approach. The company’s B shares have risen 5.2% in Stockholm over the last 12 months, giving it a market value of $3.9 billion.

Midea has been interested in Electrolux for years and it can’t be ruled out that the Chinese firm will revisit the deal in the future.

Representatives for Electrolux and Investor AB declined to comment, while a spokesperson for Midea couldn’t immediately be reached.

Source: Yahoo

About Miabell Mallikka

Miabell Mallikka is a journalist working with ScandAsia at the headquarters in Bangkok.

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