American conglomerate General Electric (GE) may sell its household appliances division, estimated to be worth 2 billion dollars, to Swedish giant Electrolux.
Buy market share in a stagnant branch
GE has recently decided to get rid of its household appliances division and to focus on more industrial activities. One of the possible buyers is Electrolux, according to press agency Reuters.
Electrolux, known for its AEG and Zanussi brands, wants to "buy more turnover" through this take-over. The Swedish company has been battling stagnant American and European revenue these past few years because of the crisis. Belgian sales have also suffered, as the slight recovery in the first quarter was not maintained in the second quarter.
However, Electrolux is not the only interested party: again according to Reuters, Quirky is also a possible buyer. It is a young company which develops consumer products and GE has even invested 30 million into this particular company only last year. Teaming up with an investor, Quirky would seek a majority stake in the household appliances division, with a minority stake still in the hands of General Electric.