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Whirlpool India to acquire 49% of Elica India

Whirlpool of India Ltd.'s board on June 2 approved a proposal to acquire a 49% stake in Elica PB India Pvt Ltd., a subsidiary of Italian household appliance maker Elica SpA, according to filings to the Bombay Stock Exchange and the National Stock Exchange of India.

Whirlpool India said it expects the move to broaden its distribution and expand its portfolio of products with Elica's capabilities in consumer insights, design and manufacturing.

The share purchase is worth approximately 1.62 billion rupees in cash and is expected to be completed in the second half of 2018.

As part of the deal, the Whirlpool Corp. unit and Elica PB will form a joint venture, in which the latter will manufacture and distribute cooking and built-in appliances under the Whirlpool brand in India.

Whirlpool India's parent already owns a 12.5% stake in Elica SpA. Whirlpool India said part of the shares proposed to be acquired will be from Elica's parent company.

Whirlpool India added that the parent companies of both Indian subsidiaries will file for regulatory approvals outside the country.

Upon completion of the transaction, Pralhad Bhutada will continue as CEO of Elica India, and Elica India will still be a subsidiary of Elica SpA. Whirlpool India will have the right to appoint two nominee directors to Elica India's board, while Elica is authorized to appoint three nominees, including chairman and CEO.

As of June 1, US$1 was equivalent to 66.97 Indian rupees.