Turkey39;s Arcelik will own 75 of new Europefocused entity
Whirlpool will retain a 25 stake
Arcelik shares rise as much as 9
Sale part of plan to focus on higher margin businesses

Jan 17 Reuters U.S. home appliances maker Whirlpool is folding its European business into a new company controlled by Turkish rival Arcelik, reducing its exposure to a market where it had warned attractive profit margins could be some way off.

Whirlpool also said it had agreed to sell its Middle Eastern and African businesses to Arcelik, which the Turkish firm said was for 20 million euros 21.65 million in cash.

The moves come after Whirlpool launched a review of its Europe, Middle East and Africa EMEA operations in April 2022 and said it planned to focus on higher margin businesses.

Global firms have been cutting their European operations due to sluggish growth and high energy costs. Turkish exporters, meanwhile, have gained a competitive edge from a plunge in the country39;s lira currency to record lows, making goods produced in Turkey cheaper to overseas buyers.

This allows us to participate in significant value creation from the repositioning of the business and cost synergies through our minority interest, said Whirlpool Chief Executive Officer Marc Bitzer.

The new firm will include Arcelik39;s European units such as major domestic appliances, small domestic appliances and consumer electronics. Whirlpool will own 25 and Arcelik will own 75, the U.S.based company said on Tuesday….