Haier Group, China’s biggest home appliance manufacturer, is promising to assume Maytag’s US$975 million in debt. The pledge has boosted its takeover bid to US$2.25 billion for the aling white goods company, today’s China Business News reported.
Although Haier’s latest offer is higher than its competitors, it is still unclear which bid will win. Since Maytag agreed to a takeover by a group led by Ripplewood Holdings LLC for US$2.1 billion on May 19, Maytag would have to pay a penalty of US$40 million if it breaks the contact.
The potential acquisition would make Haier one of the top four appliance makers in the US.