A person familiar with the matter revealed that the group of Chinese home appliances and beauty groups had abandoned the acquisition of this Swedish home appliance manufacturer after learning that Elex was unwilling to accept the agreement.
Bloomberg News on Thursday (June 22) quoted anonymous insiders reported that since the preliminary contact with Electrolux this spring, the two companies have been negotiating on potential trading conditions.Midea cannot meet all the requirements put forward by Elex and its largest shareholder Investor AB.
Although the dishwasher and the refrigerator industry may not be regarded as risk for national security, in the context of the introduction of more protectionist measures in Europe and the United States, Elex and Investor AB requires Midea to be in pricing and regulatory issues.Make guarantee.
People familiar with the matter said that Elex and INVESTOR AB hopes that even if they encounter obstacle acquisitions in supervision, they will advance.People familiar with the matter also said that Elex and Investor AB also sought employment, management and strategic guarantee.Investor AB, the investment platform of the Wallenberg family in Sweden, holds nearly 18%of Elex's equity and 3%voting rights.
In early May, Bloomberg News reported Midea's discussion on the acquisition of Elex, the stock price of the Swedish home appliance manufacturer rose sharply.Elex's B shares have risen 5.2%in Stockholm's stock market for the past 12 months to make its market value reached 3.9 billion US dollars (about S $ 5.2 billion).
People familiar with the matter said that although the current acquisition plan has been put on hold, Midea has been interested in Elex for many years, and it cannot be ruled out that it will re -consider this transaction in the future.Representatives of Elex and Investor AB did not comment, and Midea spokesman failed to immediately respond to the comment request.
Midea, headquartered in Foshan City, Guangdong Province, has always sought a friendly agreement with Elex.Midea is not unfamiliar with overseas acquisitions. In 2016, it bought the controlling stake in Toshiba home appliances, and one year later, it acquired Kuka Ag, a German robot manufacturer, causing concerns about the German government.
