Electrolux (ELUXY), a Sweden-based company that makes and sells household appliances, has agreed to buy General Electric’s (GE) GE Appliances for $3.3 billion.
The deal between General Electric and Electrolux is expected to be finalized in 2015 after it gets regulatory approval. The deal will put the GE, Electrolux and Frigidaire brands under the same owner. The combination of the two companies is expected to bring sales close to $23 billion, reports USA Today.
The deal between Electrolux and GE Appliances will likely result in the loss of jobs for some employees. Both companies have factories to manufacture appliances in and it’s possible that some of those factories will be closed. A General Electric spokesperson said the company will let “employees, customers and the communities in which we operate” know more information about changes first, USA Today notes.
According to Electrolux CEO Keith R. McLoughlin, the purchase of GE Appliances will almost double the company’s business in North America. The company reported revenue of about $15 billion in 2013. GE Appliances reported revenue of $5.7 billion during that same time, reports The New York Times.
ELUXY shares were up 5% as of Monday afternoon.
GE shares were up slightly as of Monday afternoon.
