WASHINGTON (dpa-AFX) - Whirlpool Corp. (WHR) has closed its acquisition of a majority interest in Hefei Rongshida Sanyo Electric Co., Ltd., a home appliances manufacturer based in Hefei, China.
Hefei Sanyo has an established and broad distribution network that includes more than 30,000 outlets nationwide. Their significant presence in rural markets complements Whirlpool's presence in China's higher-tier cities. With this acquisition, Whirlpool also will gain manufacturing scale and a competitive cost structure in the city of Hefei.
This investment reflects Whirlpool's continued confidence in the China market and is a logical extension of both companies' growth trajectories to date. This acquisition would further advance the city of Hefei as an important global production and research and development center for the home appliance sector.
The ability to consolidate operations offers strong synergies as Whirlpool would provide extensive technical, marketing and product development, combined with Hefei Sanyo's sales execution and operational strengths, to support the next phase of development.
In relation with the acquisition, the name 'Hefei Rongshida Sanyo Electric Co., Ltd.' would be changed to 'Whirlpool China Co., Ltd.' The name change is subject to customary registration and approval processes, after which the name on the Shanghai Stock Exchange would be changed accordingly.
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