Latin America. Midea Holding announced that it has reached an agreement to buy 51% of Carrier's subsidiary in Latin America in order to accelerate its global expansion plan.
The Chinese air conditioning firm confirmed in a statement that it will pay about $223 million for the stake of that percentage through its subsidiary Midea Electrics Netherlands BV.
Carrier will retain 49% of its subsidiaries in Latin America, including the Brazil base, Springer Carrier Ltd. and Climazon Industrial Ltd;; that of Argentina, Aro S.A., Carrier S.A. and Carrier Fueguina S.A., and Carrier Chile.
These firms generated revenues in 2010 amounting to US$621 million and net profit was US$34.8 million.
8 million air conditioning units were sold in different Latin American countries last year, including 4 million in Brazil.
The negotiation is still awaiting approval from the Guangdong Department of Foreign Trade and Economic Cooperation and China's National Development and Reform Commission.
