DLA Piper advises Haier Smart Home on ZAR2.45bn Electrolux South Africa subsidiary acquisition
A truly global DLA Piper team has advised Haier Smart Home, based in Qingdao, China, on the acquisition of Electrolux Group’s complete equity interests in its subsidiary Electrolux South Africa Proprietary Limited (ESA) for ZAR2.45 billion (approximately RMB980 million).
ESA, a leading water heater manufacturer in South Africa, owns the century-old brand Kwikot. It specialises in electric water heaters, solar water heaters, multi-energy solutions, gas water heaters, heat pumps, and other diversified products. ESA operates established distribution channels, an installation network, and after-sales services, ensuring prompt responses and quality. This acquisition is a strategic move for Haier Smart Home’s growth in the African market, impacting both their Middle East and Africa strategy and their global brand portfolio.
Haier Smart Home, a subsidiary of the Haier Group, was founded in 1984. As the world’s largest home appliance manufacturer, it specialises in smart home solutions. The company is listed on the Shanghai Stock Exchange, the China Europe International Exchange in Frankfurt, Germany, and the Hong Kong Stock Exchange. With over 100,000 employees globally, Haier Smart Home has established seven premium home appliance brand clusters worldwide. These include Haier, Casarte, Leader, GE Appliances (United States), Fisher&Paykel (New Zealand), AQUA (Japan), and Candy (Italy). Additionally, Haier Smart Home introduced the world’s first scenario brand, SANYINIAO, which defines innovative smart home solutions for users.
Corporate partners James Chang (Beijing, China) and Johannes Gouws (Johannesburg, South Africa) co-led the transaction with the support of a multijurisdictional team. James commented: “Our successful representation of Haier Smart Home reflects our dedication to providing the highest quality legal advice to the most successful businesses in the world. This meaningful transaction was supported by our China and South Africa offices, leveraging their extensive experience in supporting multinationals in their cross-border deal-making activities.
Johannes added: “It is a privilege to act for Haier in this transaction and exciting to welcome them as an investor in South Africa. We look forward to assisting Haier in their further growth plans.”
James and Johannes were supported on the mergers and acquisitions aspect of the transaction by Corporate senior associates Wenhong You (Shanghai), Danielle Robbertze (Johannesburg) and Nicole Cai (Stockholm) and Corporate consultant Stephanie Chen Zhang (Beijing). Litigation & Regulatory director Werner Rysbergen and senior associate Dharshini Naidoo (both in Johannesburg), supported by Litigation & Regulatory partner Nathan Bush (Singapore), provided competition law advice. Intellectual Property & Technology partner Livia Dyer and associate Humayra Hajat (both in Johannesburg) provided intellectual property and broad-based black economic empowerment law advice. Tax director Andrew Lewis and associate Christoph Berndt (both in Johannesburg) advised on the regulatory aspects of the transaction. Winstanley Inc. provided environmental law advice.
