South Africa Regulatory Body Approves Acquisition of Kwikot by Haier

South Africa: Haier Europe Appliances Holding has received conditional approval from the Competition Commission of South Africa for its acquisition of Electrolux South Africa’s Kwikot water heater business.  This acquisition, valued at ZAR 2.4 billion (USD 126 million), includes the Kwikot brand and production facilities in Johannesburg. Kwikot, known for its hot water systems and related products, generated around ZAR 1.9 billion (USD 99.5 million) in sales in 2023. The transaction aligns with Electrolux’s strategy to focus on core business areas by divesting non-core assets. Electrolux Group has signed an agreement to divest its South African water heater business under the Kwikot brand to Haier Smart Home back in July this year. 

The Commission found no significant competition concerns in the merger. To address public interest, the transaction includes provisions such as establishing an employee share ownership programme (ESOP) within 24 months and a commitment from Electrolux South Africa not to retrench employees for two years post-merger. Electrolux’s other home appliance brands and products in South Africa are not part of this acquisition.

Source: KZN Industrial News