October 3, 2023

CMA finds that the merger of two home appliance suppliers could reduce competition in UK

The Competition and Markets Authority recently announced that, based on Phase 1 of its investigation, a merger between global home appliance providers Arçelik, AS and Whirlpool Corporation would establish the largest individual supplier of washing machines, tumble dryer, dishwashers and cooking appliances, a market worth more than £3.8 billion in the UK.  The CMA reported that if Arçelik acquired Whirlpool’s EMEA Major Domestic Appliance Business as proposed, the company would face competition from only a small number of competitors in the low-mid price range, which would likely cause consumers in the UK to pay more for these appliances or receive lower quality products.  Based on the information gathered to date, the CMA determined that the merger was not expected to lessen competition in the supply of refrigerators and freezers in the UK.  The parties have until October 5, 2023 to provide the CMA with solutions to address its concerns.  If acceptable solutions are not received, the CMA will commence Phase 2 of its investigation.

CMA Press Release | CMA – Phase 1 Decision | Merger Inquiry Timeline