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.

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