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The transaction will be referred for an in-depth Phase 2 investigation unless Ar莽elik offers undertakings to address the Competition and Markets Authority鈥檚 (CMA) concerns.

Ar莽elik A.S.(Ar莽elik) 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 拢3.8 billion in the UK.

Ar莽elik and Whirlpool鈥檚 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鈥機arroll, 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鈥檙e 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 Ar莽elik offers a solution to address our concerns, we鈥檒l move to an in-depth investigation.

More information can be found via the Ar莽elik /Whirlpool case page.

Notes to editors

1. Ar莽elik agreed to acquire Whirlpool鈥檚 EMEA Major Domestic Appliances Business pursuant to a Contribution Agreement dated 16 January 2023, under which Ar莽elik will set up a new standalone business, Beko Europe B.V.
2. 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.
3. 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.
4. The parties have until 5 October 2023 to offer an undertaking which might be accepted by the CMA to address the SLCs.
5. For more information, journalists should contact the CMA press office by email on [email protected] or by phone on 020 3738 6460.
6. All enquiries from the general public are directed to the CMA鈥檚 General Enquiries team on [email protected] or 020 3738 6000.