Refrigerators and washing machines manufactured by Swedish giant Electrolux were once a common option for Indian households, before it left only to make a comeback less than a year back. Mirroring other global brands, it also chose to manufacture air conditioners in India, and has been carving out a market share for other appliances as well.
But at a time when Chinese ventures and brands face scrutiny in India, China-based Midea is making a bid to acquire Electrolux AB.
Not a first for Midea
The Chinese electrical appliance giant has been showing interest in the Swedish firm, despite possible political opposition.
Apart from protectionist policies and apprehension about China in the US and Europe, Electrolux's strong earnings and financial position will test Midea's negotiation skills.
Midea has been spreading its wings beyond China, with the acquisition of a stake in Toshiba and by taking over German robot firm Kuka AG.
Factors working for Midea
For Electrolux, Midea is no stranger since the two collaborated to launch a high-end line of appliances in China, back in 2018.
Support from the Whallenberg family's Investor AB will be a game changer, since it is the largest shareholder in Electrolux.
Midea's offer may be interesting for Electrolux, as it tries to cut costs by firing more than 3,800 employees as part of a global tech layoff.
