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 /Whirlpool case page.
Notes to editors
- 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.
- 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.
- 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.
- The parties have until 5 October 2023 to offer an undertaking which might be accepted by the CMA to address the SLCs.
- For more information, journalists should contact the CMA press office by email on press@cma.gov.uk or by phone on 020 3738 6460.
- All enquiries from the general public are directed to the CMA’s General Enquiries team on general.enquiries@cma.gov.uk or 020 3738 6000.
