The Competitive Markets Authority (CMA) said it has referred the purchase of Whirlpool’s EMEA business by Arçelik for an in-depth investigation.
Turkish appliance company Arçelik and US company Whirlpool entered into a Contribution Agreement, in January 2023, where Arçelik will have the majority of shares in standalone business, Beko Europe.
Arçelik supplies major domestic appliances under Beko, Blomberg and Grundig brands in the UK, while Whirlpool owns Whirlpool, Indesit and Hotpoint brands.
The CMA stated the new business could reduce choices in the supply of major household appliances.
It would see the new company becoming the largest individual supplier of washing machines, tumble dryers, dishwashers and cooking appliances – a market worth over £3.8 billion in the UK – said the CMA.
The CMA asked both parties to respond to the CMA about its concerns by October 5, otherwise it would move to more in-depth investigation.
It said the decision for a Phase 2 probe was taken after the parties informed the regulator they would not offer any undertakings towards addressing any potential substantial lessening of competition within the UK due to the deal.
A spokesperson for Whirpool commented: “We look forward to continuing our constructive dialogue with the CMA in a Phase 2 process for our proposed transaction with Arçelik.
“The combination of our two businesses will bring significant benefits for customers and consumers through attractive brands, sustainable manufacturing, product innovation, and consumer services. We believe the CMA should reach the same conclusion following its review.”
Kitchens & Bathrooms News – KBN – reached out to Arçelik, which said it would not be providing comment, currently.