Electrolux Says Olympic Group Acquisition Is Still On Track
31 Gennaio 2011 - 9:56AM
Dow Jones News
Swedish household appliance manufacturer Electrolux AB
(ELUX-B.SK) said Monday it is too early to say if the political
turmoil in Egypt will impact its planned acquisition of Cairo-based
household appliances maker Olympic Group (OLGR.CI).
"We are of course following the development in Egypt closely,"
said Electrolux spokesman Erik Zsiga.
In October last year, Electrolux announced a preliminary
agreement to acquire a 52% stake in Egypt-listed Olympic Group
(OLGR.CI), one of the largest manufacturers of household appliances
in the Middle East and North Africa, from the holding company
Paradise Capital.
Electrolux has previously said the $248 million acquisition is
expected to reach completion during the second quarter of 2011.
"Due diligence continues as planned. Right now it is too early
to say how the current situation will impact the process," said
Zsiga.
Olympic Group and Electrolux have been working together on
technology, component supply, distribution and brand licensing for
almost 30 years. In 2009 Olympic Group, with 7,300 employees, had
sales of $369 million and an estimated volume market share of 30%
in Egypt.
Protesters in Egypt Monday called for a general strike and said
that they were planning further protests Tuesday to mark one week
since the start of deadly anti-government riots, according to the
AFP news agency.
-By Sven Grundberg, Dow Jones Newswires; +46-8-5451-3098;
sven.grundberg@dowjones.com