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Wed 2 Feb 2011 08:38 PM

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Egypt unrest puts Electrolux Olympic deal on hold

Swedish firm had agreed to $386.4m deal to buy Egypt’s Olympic group

Egypt unrest puts Electrolux Olympic deal on hold
PLANS SUSPENDED: Electrolux is evaluating the situation in Egypt and have agreed with the seller to put the due diligence process on hold

Home appliances maker Electrolux said on Wednesday it had suspended plans to buy Egyptian company Olympic Group due to the unrest in the Middle Eastern nation.

Buying Olympic, the biggest appliance maker in the Middle East and North Africa, is part of the Swedish company's plans to boost presence in emerging markets, which are growing faster than the developed markets of Western Europe and North America.

"Given the background of latest developments, we are evaluating the situation in Egypt and we have agreed with the seller to put the due diligence process on hold," said Electrolux spokesman Erik Zsiga.

Electrolux said in October that it had agreed to buy Olympic Group, with which the Swedish firm has worked for 30 years, for a net cost of $386.4m.

It said it would pay owner Paradise Group EP45.30 per share for a 52 percent stake and then launch an offer for the rest of the company on completion of the deal at the same price.

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