Swedish electronics giant Electrolux has paid 3.3 billion dollars (2.5 billion euro) for General Electric's household appliances branch. The acquisition should enable it to compete with Whirlpool in the American market.
Electrolux has now gained several new brands, like GE Monogram, GE Café and Hotpoint, which are mostly known in the United States. Electrolux' own brands, like Zanussi and AEG, are mostly European brands. The General Electric purchase means that Electrolux, currently number 2, can now compete with the branch's market leader, Whirlpool.
General Electric decided to sell off the division as it aims to focus on activities with more growth potential. To be able to pay for the acquisition, Electrolux will sell new shares to cover 25 % of the purchase price.