Siweite in final stages to buy popular washing machine brand
A little-known private company is set to defeat larger competitors and acquire Little Swan, one of the mainland's best-known brands of washing machines.
A spokeswoman for Nanjing Siweite Group said it was in the final stages of negotiations to buy Shenzhen-listed Wuxi Little Swan Shareholding but refused to give further details.
The listed company is part of the Little Swan group, which was set up in 1989. It is one of China's biggest manufacturers of washing machines and the Little Swan brand is known nationwide.
According to the group's Web site, the brand is worth 6.76 billion yuan (HK$6.37 billion). The group has assets of 7.5 billion yuan and achieved sales last year of more than 10 billion yuan, including freezers, air-conditioners, dishwashers, refrigerators and industrial cleaning machines, as well as washing machines.
The listed company posted profits for 10 consecutive years until last year, when it suffered a record 400 million yuan loss due to intense competition in the washing machine sector, failed investment projects and the inability to collect debts.