According to the Japanese Kyodo Agency, Turkey’s biggest producer of domestic appliances, Arçelik, is negotiating to begin sales with the global giant, Toshiba, which along with electronic goods, also produces household and domestic appliances.
According to the Agency, Arçelik who are better known as Beko in the UK is considering purchasing the domestic appliances department of Toshiba. Arçelik had previously announced in a statement that they were planning to grow by approximately 10 percent this year. Furthermore, the same statement said it was estimated that the market share in current activity and operation zones will either be increased or remain at the same sale level, and the number of domestic appliances sold within the borders of Turkey is estimated to increase by 3 to 5 percent, while the increase in foreign sales is targeted to increase around 2 percent.
Arçelik’s earnings before interest, taxes and depreciation margin expectation was deemed as 11 percent for both 2016 and in the long-term.
The share certificates of Toshiba, one of the biggest technology giants, fell to the lowest level within the last 35 years on Feb. 5. The company had announced that their expected loss at the end of this financial year was $6 billion. Toshiba’s announcement caused the Tokyo Stock Market to nearly collapse. It was also claimed that the company, which is engaged in various fields from electronic pots to nuclear plants, would shut down its PC and laptop department.
After this news broke, Arçelik’s share certificates traded on the Borsa Istanbul stock exchange skyrocketed 7.33 percent and rose to TL 18.73 ($6.32).
Further to this news it has been reported that Arçelik has not denied that negotiations to acquire Toshiba’s white goods manufacturing unit have taken place and said it always considers investment opportunities in accordance with the company’s growth strategy.
In a statement to the Public Disclosure Platform Arçelik said it always evaluates investment alternatives and that the company did not see a need to publicise the talks before media reports.
So it may well be that Arclik is set to take over the Toshiba brand name for domestic appliances.
