Samsung Electronics might soon start selling you small kitchen appliances such as coffee makers and toasters, according to industry watchers who believe that the Korean tech giant might be acquiring Philips’ domestic appliance business.
Samsung hasn’t revealed any official plans on the matter, however, Dutch conglomerate Philips already confirmed that it’s looking to sell its domestic appliance business over the next year. Some market insiders now speculate that Samsung Electronics is looking to acquire Philips’ appliance arm, but others remain skeptical.
Samsung is not the only company on Philips’ radar
Sources cited by Pulse claim that Samsung is not the only Korean giant who might have an interest in buying Philips’ domestic appliance business. Samsung’s neighboring competitor LG Electronics is reportedly doing the same. However, other market watchers are skeptical about this potential buyout because it would require massive investments from either company.
Philips’ domestic appliance business has factories in a few countries including Austria, Brazil, and China. It also owns R&D centers in India, Hong Kong, Singapore, and Italy, all the while employing roughly 4,700 workers worldwide.
Samsung is already selling large kitchen appliances – including refrigerators and ovens – but it has no market share in the small domestic appliance segment. Acquiring Philips’ arm would open up new opportunities of expansion, but it’s unclear whether the Philips brand would remain intact as a Samsung subsidiary or if the Korean tech giant would start selling small appliances under its own brand.
However, even though a buyout would make sense given Samsung’s existing foothold in the domestic appliance market, this is not a decision that’s going to be taken lightly. An acquisition deal with Philips would likely cost billions of dollars and investment banking sources cited by the Korean media believe that it might represent a high risk for Samsung, and indeed, LG. Philips wants to sell its domestic appliance arm by mid-2021.
The post Samsung might start selling small appliances if it acquires Philips’ arm appeared first on SamMobile.
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