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LG, Haier May Bid for GE Appliances Unit |
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Written by Chelsey Drysdale
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Thursday, 29 May 2008 |
FAIRFIELD, CT – LG Electronics and Haier Group have been cited as potential buyers of General Electric’s appliances unit, according to GE’s CEO Jeffrey Immelt, say published reports. However, the firms aren’t speaking on the record.
Immelt also named Mexico's Controladora Mabe, Sweden's Electrolux and Turkey's Arcelik as possible bidders, and mentioned a potential GE “spinoff.”
The division could draw offers of $3 billion to $8 billion, say analysts at Citigroup and Goldman Sachs. GE had appliance sales of $13.3 billion last year.
The named firms aren't talking. LG says it has not made a decision to bid for the GE unit. The company is “carefully monitoring” the sale of GE's appliances division, says CEO Nam Yong, according to reports. Haier has declined comment.
LG reported sales of $11.3 billion in 2007 from appliances. North America accounted for 29% of the division's first-quarter sales. Haier is expected to generate $1.4 billion in revenue this year.
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