GE has decided to exit from its appliances business. As soon as this news spread in the air, the other electronics giant all around the world started calculating their permutations and combinations. And the foremost bidder is LG, a South Korea based electronics items manufacturing company and currently the world no. 3 manufacturers of white goods.
GE's appliance division is one of its oldest division founded in 1907, currently having 13,000 employees. Due to the intense price competition from the Asian manufacturers, GE is left with no option other than to sell it. GE's appliance division suffered from low growth rates and contributed 'only' $7 billion to GE's revenue last year, out of $173 billion total. GE has seen a high rate of growth in other businesses like in transport, medical imaging and energy. In this case selling its appliance business makes sense in some calculations.
LG is currently just behind Whirlpool and Electrolux in the race of manufacturing white goods. LG is a reputed name in mobile phones and plasma television. However the battle to own GE appliances is going to be fierce and it isn't easy to get. The other prominent bidders on the list are China's Haier Group, Mexico's Controladora Mabe, Turkey's Arcelik and Stockholm-based Electrolux.
But the chances of LG are quite strong and LG Electronics has been on everybody's short list as a potential buyer. GE's CEO Jeffrey Immelt further fueled the speculation by praising the LG. During his recent visit to South Korea, he called LG "a great company," and "clearly one of the leading candidates,".
Whoever wins GE Appliances, lies in the future but one thing is sure that LG is poised to challenge Whirlpool for the top spot in the global households business in coming years.
LG is currently just behind Whirlpool and Electrolux in the race of manufacturing white goods. LG is a reputed name in mobile phones and plasma television. However the battle to own GE appliances is going to be fierce and it isn't easy to get. The other prominent bidders on the list are China's Haier Group, Mexico's Controladora Mabe, Turkey's Arcelik and Stockholm-based Electrolux.
But the chances of LG are quite strong and LG Electronics has been on everybody's short list as a potential buyer. GE's CEO Jeffrey Immelt further fueled the speculation by praising the LG. During his recent visit to South Korea, he called LG "a great company," and "clearly one of the leading candidates,".
Whoever wins GE Appliances, lies in the future but one thing is sure that LG is poised to challenge Whirlpool for the top spot in the global households business in coming years.
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