China: Midea Group has announced entering into a Definitive Agreement with Clivet for the acquisition of 80% of the company’s stakes and related real estate assets, while the remaining 20% of the stake will be retained by the current shareholders of Clivet, the Bellò family.

Through this strategic alliance, Midea Group said it will reinforce its presence in the European markets, and by leveraging each other’s complementary capabilities and resources, the two enterprises will jointly explore growth opportunities. The completion of the transaction is subject to customary anti-trust clearances in relevant jurisdictions, and is expected before the end of the year, added the company.

According to a news report in JARN, the acquisition of Clivet by Midea and Mitsubishi Electric’s acquisition of Climaveneta, last December, could spark-off fierce competition in the European air conditioner commercial market, as Asian manufacturers explore opportunities with their European counterparts.

The report further said that the situation began to change as Chinese air conditioner manufacturers increased the exports of “room air conditioners (RACs) to overseas markets on an original equipment manufacturer (OEM) basis”.

“This strategic alliance is a win-win co-operation,” said Eric Tian, President of Midea Commercial Air Conditioning Division. “The complementary strengths of Midea and Clivet S.p.A. will create significant synergies in product offerings, market presence, supply chain and manufacturing.”

Bruno Bellò, Chairman of Clivet, added: “Clivet will become a true European center of excellence in developing innovative solutions for total comfort and energy efficiency. The alliance with Midea will unlock industrial synergies and increase the production capacity of Clivet’s Italian plants, granting a solid growth for both the Italian company and its collaborators.”