This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Consumer Stock Takeovers: Deals and Targets

Home appliances maker Electrolux agreed to acquire Chilean appliance maker CTI, according to Aug. 22 reports.

The deal was valued at 4.4 billion crowns ($686.5 million), Electrolux said on Aug. 22. Under the terms of the deal, Electrolux will purchase 64% of CTI shares owned by Sigdo Koppers and associated parties. It will also begin a cash tender offer to acquire 100% of all outstanding CTI shares at 34.87 Chilean pesos (7.4 cents) per share, plus another cash tender offer for all outstanding shares of CTI subsidiary Somela for 325 Chilean pesos (69 cents) per share.

CTI makes fridges, stoves, washing machines and heaters, and holds around 36% of the Chilean market share for home appliances, with a strong footprint in Argentina as well.

Sweden's Electrolux sees the acquisition as a way to help bolster its presence in emerging markets as sluggish demand persists in mature consumer markets.


"The company is not growing its earnings at a dramatic pace by these acquisitions, but price tags seem reasonable and the strategic importance should not be underestimated," noted analysts from Danske Markets.

Electrolux had also been in talks to acquire bankrupt South Korean company Daewoo but those negotiations ended. It did recently acquire Egyptian appliance maker Olympic Group.

8 of 25

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,378.31 -38.54 -0.22%
S&P 500 2,015.56 -5.69 -0.28%
NASDAQ 4,678.8850 -4.5220 -0.10%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs