Advent reportedly emerged as the frontrunner in the deal. This was part of Whirlpool Corp’s broader plan to reduce its 51% stake in the Indian unit to around 20% as it looks to raise cash to pay down debt amid a global asset restructuring. Whirlpool had previously estimated that the sale could generate net cash proceeds of $550 million to $600 million.
However, the deal fell through due to disagreements over valuation. Sources indicated that Advent was pushing for a lower price, citing near-term headwinds in India including stricter regulations on product standards and energy efficiency standards.
The report added that while Whirlpool’s primary goal was to raise money to repay debt, the requested valuation did not match Advent’s offer.
The failed deal could have marked a significant ownership shift for Whirlpool’s Indian operations, which remains a prominent player in the home appliances market.
Whirlpool of India’s revenue from operations grew 16% in FY24 to $880.53 million, but increasing competition from companies like LG Electronics India and Samsung Electronics has weighed on sales performance. On Friday, shares of Whirlpool of India closed almost 3% lower at Rs 949.45 on the BSE.
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