April 24, 2024

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[THE INVESTOR] Mexican alliance maker Mabe is reportedly considering bidding for Dongbu Daewoo Electronics, the troubled Korean appliance maker whose key market is Latin America.

According to news reports on Sept. 1, Mabe has recently received an information memorandum from the deal adviser to consider its bid for the Korean company. Mabe is one of the top appliance brands in Latin America along with Whirlpool and Electrolux. 

Mabe's built-in appliances

Other than Mabe, Sweden’s Electrolux and China’s Haier are also expected to join the race as they have been bidding for the Korean firm that has experienced several ownership changes since its separation from the bankrupt Daewoo Group in 1999.

Some Korean bidders such as Hyundai Department Store Group, SM Group and Daeyoo Group are also cited as potential bidders but industry sources predict the possibility is low considering Dongbu’s sales mostly come from overseas markets, especially Middle East and Latin America.

Reports said the preliminary bidding is expected to be held as early as this month.

By Lee Ji-yoon (jylee@heraldcorp.com)