This story has been updated from 8:10 am EDT with additional information and analysts' comments.
NEW YORK (TheStreet) -- Shares of General Electric (GE) were slightly higher on Monday after it was reported that Electrolux (ELUXY) would buy GE's appliances business for $3.3 billion in cash to double sales in North America and take on rival Whirlpool (WHR) in its biggest ever deal.
To help finance the takeover, Stockholm-based Electrolux said it would soon launch an $830 million rights issue, according to The Deal. The duo just under a month ago confirmed they were in talks on the division, which GE first tried to sell five years ago. Electrolux said it can squeeze "significant synergies" out of the union by getting better prices on parts and eliminating overlapping administrative functions.
"It's an attractive strategic fit for us ... very complementary products, brands, channels, distribution," CEO Keith McLoughlin told TheStreet on Monday, adding that there are substantial synergies available.
"The GE appliance brand is very well recognized" by U.S. consumers, he added. "It's a good brand to have in the portfolio."
Electrolux CEO Keith McLoughlin talks to TheStreet's Ruben Ramirez about the deal:
Brian Langenberg, Langenberg & Co. (Buy; $28 PT)
We are underwhelmed with the $3.3 billion price tag, which is leaving about $2 billion in value on the table. "Strengthening" the business from awful to poor is not a win. Years of neglect allowed margin to deteriorate from 12% to nil then back to 5-6%. Getting EBIT (not EBITDA, EBIT) back to $650-750 million would drive cash flow and a better exist price.