Electrolux is buying GE’s U.S.-focused appliances unit in an all-cash purchase part-funded by a rights issue. It’s a win for the Swedish firm, says Reuters Breakingviews’ Quentin Webb.
-- trucks -- GE appliances sending the shares to a record high we were off a little bit now but it's interesting I'm. Quinton his -- given the this is. Half funded by -- rights issues to deal. Yeah I think the reaction missing here is thousands of very well priced deals for election looks once you take into -- -- safe. Quite close of costs by combining. GE's appliance business which almost all in the North American market with an actual books its existing business can take on local. I think they can yet but I mean expects to be a mean in North America isn't well actually the game is also it's kind of fend off the South Koreans have faith and Samsung and LG yeah. Cropping markets have from this conference play is very very quickly and Samsung has ambitions for the world number one. And you you you think you might surprise you say it's a win for Toronto's Adam B this this mix of rights issue and cash. And say here on the debt that what speed -- Well I think that's quite sensible way it's sort of ensure that you retain some Amanda financial flexibility thing -- leverage the company. These industries in which rule material costs -- very very important and say. You don't wanna be to kind of constrained by having the players did G edited. -- the -- this enormous surrounding -- think about decisive -- G in the kind of annual revenues and they make I would say they probably didn't get as good deal for what they're doing is they're fixing on that kind of -- and infrastructure -- clever engineering unit making jet turbines things like this. And then no longer interest in him and in making washing machines and that conditioning units until. -- to say about the European market -- because clearly this is a focus on this is. A point that the the US market this is critical for a thought for the election boxes of the world what does that say about you -- him -- and how they doing in your. Well Europe has quite painful if you think about it this way and appliances is a bit like that -- industry. That big ticket pets is that people they make very often -- that quite kids kind of economic cycles. And this lawless kind of spending on steel and other raw material costs and have these low cost or ambitious players from Asia coming in and stealing eating your lunch. From there I mean they were up against what was that that the chemical could keep some. I'm not clear if I was ever -- a serious. And all thrown all of this has become a star tub that was looking apparently reportedly for kind of products to back has to do different kind of -- -- -- -- -- The two big plasma and it. That the team because ties yes because -- -- some -- and LT and kind of creeping up on the right. Great many things about -- -- from -- breaking views about the Europeans should the US has told police consented to previous three months.