Rueters have reported that Indesit is considering making a bid for a stake in Chinese washing machine maker Wuxi Little Swan after news that Swan’s main shareholder was planning to sell it (as we reported in an article on January 22nd) a source close to the matter said on Friday.
Indesit has been looking to expand in overseas markets such as China and India, had yet to make a decision, the source told Reuters on condition of anonymity.
Little Swan’s controlling shareholder is a state-owned company called Wuxi Guolian Development which plans to sell off its 24 percent stake.
Based in the eastern Chinese city of Wuxi, Little Swan has been struggling in recent years due to a fierce price war in China’s home appliance industry.
Chinese appliance maker Sichuan Changhong Electric Co has expressed interest as well, and China’s media have reported others have also been thinking about making a bid.
In October, General Electric bought a 30 percent stake in one of Swan’s units for $7.1 million. GE will help Little Swan to sell washing machines overseas and both sides will cooperate on research and development.