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UPDATE 1-Slovene appliance maker Gorenje buys Sweden's Asko
July 28, 2010 / 7:30 AM / 7 years ago

UPDATE 1-Slovene appliance maker Gorenje buys Sweden's Asko

* No purchase price given

* Deal details to be released on Aug. 17 (Updates with details, background)

LJUBLJANA, July 28 (Reuters) - Slovenia’s largest household appliances maker Gorenje (GORE.LJ) said on Wednesday it has bought Swedish rival Asko Appliances Group, in an attempt to boost growth.

It said a contract to buy Asko was signed on Tuesday, adding details of the purchase will be announced on Aug. 17. It gave no purchase price.

“The takeover is of strategic importance ... enabling significant synergies and a possibility of faster growth,” Gorenje said.

It said Asko, which was formerly owned by Italy’s Antonio Merloni Group, has production units in Sweden and Finland. Asko’s products are mainly sold in Scandinavia, North America and Australia.

Gorenje, which is Slovenia’s second-largest exporter, recently issued 25 million euros ($32.27 million) of new shares to finance takeovers. A further equity issue is planned in the coming months [ID:nLDE63P0AQ].

Gorenje’s chief executive Franjo Bobinac told Reuters in an interview earlier this year that the new capital will be spent on takeovers, restructuring and developing new products [ID:nLFDE60P223].

Shares of Gorenje closed 0.8 percent higher at 11.9 euros on Tuesday while the blue-chip SBI index .SBI lost 1.16 percent.

Reporting by Marja Novak; Editing by Erica Billingham

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