HONG KONG: Chinese firms Joyoung and Gree Electric are among those eyeing the domestic appliances business of Dutch conglomerate Philips in a deal worth up to €3 billion ($3.6 billion), people with knowledge of the matter said.
Philips’ advisers have sent out teasers to potential buyers, said two of the people, adding that the bidding process will start later this year.
Chinese white goods producers Haier and Midea have also shown interest in the business, and some of them are working with investment banks on a potential bid.
FASTFACT
€2 .3 billion
Philips’ domestic appliances business, which produces coffee machines, vacuum cleaners and airfryers, generated €2.3 billion in sales in 2019.
Their interest comes even as Chinese white goods companies have faced heightened regulatory scrutiny of their acquisitions in Western nations.
Philips announced in January a plan to carve out its domestic appliances business, which produces coffee machines, vacuum cleaners and airfryers and generated €2.3 billion in sales in 2019.
The company’s spokesman said on Thursday preparations for any transaction are ongoing and that they expect to start engaging with interested parties in the fall and have a deal in the third quarter next year. JPMorgan and Goldman Sachs are working on the planned divestment, he added.
Chinese white goods companies have been acquiring marquee assets overseas in the past few years. Haier bought General Electric’s appliances business in 2016 for $5.4 billion. It is now the world’s biggest maker of household appliances.
Midea’s $5 billion acquisition of German robotics maker Kuka that year raised concern in Germany about losing key technology and led to its tightened screening of foreign investors.
