I came across a story this evening which is big news in the industry and the ramifications for service on products within the UK and, indeed, the rest of the EU could be enormous. According to an article posted on EiTB24 Fagor is to outright purchase Elco-Brandt. Although this is not yet a done deal I'm sure that many of us can see that it could affect a good proportion of brands in the UK and could alter the service on either Fagor, currently through Anglo Iberian Service or Brandt/De Dietrich, currently being administered by Domestic & General.
The article reads as follows;
General meetings of members at the two cooperatives that make up Basque white line product manufacturer Fagor Electrodom©sticos yesterday approved the planned acquisition by this Mondragon Cooperative Corporation member of fellow household appliance maker Brandt.
Roughly 83 per cent of the 4,000-plus cooperative member owners of Fagor supported the operation, which will enable Fagor to double its size and take up fourth position in the Europe-wide list of white line producers. Officially, Fagor cooperative members agreed to authorize the company to present an "offer to purchase all the businesses in the Elco-Brandt group and their assets, in the conditions and prices freely agreed with the seller."
Fagor and Israeli multinational Elco, which still controls 90 per cent of Brandt, had already agreed on terms, which only required the go-ahead from the members' meeting. Now, under the agreement, Fagor will acquire the French firm outright, at a price apparently oscillating somewhere between 150 and 170 million euros. Even so, sources close to the operation reckoned the definitive price had still not been set and could well vary from the expected figure.
Big news in the whitegoods industry indeed and creates a group that may well be able to compete with the "big three".