Arçelik the parent company for Beko, Blomberg, Grundig and others has, due t the mega deal with Whirlpool announced the formation of Beko Europe.
As we reported previously Whirlpool is pulling out of Europe and a joint venture has been established with Arçelik (Beko) and the new organisation has over 20,000 employees and can churn out about 24 million appliances a year.
The new venture is owned by Beko B.V. and is split 75/25 between Beko and Whirlpool.
Hakan Bulgurlu, CEO of Arçelik, said: “We set clear targets to grow our business and transform our industry over the last 10 years, all while delivering value for our consumers, our customers, our employees and our shareholders. Our growth has been propelled by considered acquisitions and ground-breaking joint ventures with leading businesses such as Singer in Bangladesh and Hitachi in Asia.
“The creation of Beko Europe and acquisition of Whirlpool’s MENA assets marks yet another pivotal milestone in Arçelik’s journey and our tenth year of continuous growth. As one of the global leaders, with strong positions in mature and high growth markets, today we reinforce our ability to be a force for progress and change, in service of planet and people.”
Marc Bitzer, Chairman and CEO, Whirlpool, stated that: “We are pleased to achieve this significant moment in completing our transaction with Arçelik to form Beko Europe. This milestone begins an exciting new chapter in creating greater value for European consumers through attractive brands, sustainable manufacturing, product innovation and consumer services.
“We look forward to the considerable opportunities Beko Europe will unlock for consumers in the constant pursuit of improving life at home.”
Basically, in our view, this creates a behemoth of a company that spans all of Europe, much of the Middle East and parts of Africa with many, many brands that it will sell under.
Is it too much, too big… only time will tell.
But Whirlpool has floundered in Europe for three decades, failing to get any real traction with the Whirlpool brand and obviously not doing well enough with the brands it’s acquired over the decades either.
In the face of the competition from Chinese brands, especially Haier, Hisense, and Midea, which have been snapping up well-known brands over the past few years, seemingly unchecked by authorities, and undercutting on price, this might not be such a bad idea.
Of course, in Whirlpool’s native US market, they are more protected from this by strict import restrictions, for now.
