WASHINGTON (dpa-AFX) - Whirlpool Corp. (WHR) today received written approval from the China Securities Regulatory Commission or CSRC to acquire a 51 percent stake in Hefei Rongshida Sanyo Electric Co., Ltd. This is the final key regulatory approval required in the acquisition process.
The transaction may close at the end of the third quarter or early in the fourth quarter of 2014, pending final administrative processes and approvals.
The investment includes Whirlpool's commitment of capital and technical resources to improve Hefei Sanyo's research and development and product innovation capabilities. This acquisition is in line with Whirlpool's long-term strategy to grow its position in the emerging Chinese market. It will also give Chinese consumers a broader range of innovative, high-quality products through a complementary, trusted portfolio of brands.
The company anticipates that the closure of the acquisition would not materially impact its earnings and cash flow outlook for 2014. Whirlpool continues to expect the transaction to be accretive in the first full year of integration.
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