Whirlpool and Nidec complete Embraco deal

http://www.chinaiol.com   2019/7/3 15:23:26   Source:cooling post  

Whirlpool has confirmed the completion of the sale of its Embraco refrigeration compressor business unit to Japanese company Nidec.

Nidec’s bid for the Embraco business last year prompted an investigation by the European Commission after concerns that the takeover might reduce market competition.  

The deal was cleared in April of this year after Nidec committed to sell its Secop refrigeration compressor business, which included plants in Austria, Slovakia and China. These were subsequently sold to private equity funds ESSVP IV LP, ESSVP IV (Structured) LP and Silenos GmbH & Co KG.

Despite the sale of the Secop group, Nidec says it believes the deal to buy Embraco will enable it to expand further into the global refrigeration compressor market through an expansion of its product portfolio and sales area. Embraco will also remain a significant supplier of hermetic compressors to Whirlpool Corporation. 

In addition, it sees ever stricter environmental regulations stimulating customer demand for Embraco’s eco-conscious and space-saving refrigeration compressors. Nidec also believes its brushless DC motor technology will complement Embraco’s compressors. Furthermore, as motors and compressors have similarities in terms of the nature of components used, Embraco expects to reduce procurement costs by taking advantage of synergies of the Nidec group’s purchase capabilities.