Arcelik and Grundig to Merge Mar 4, 2009

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Turkish appliance maker Arcelik and its television-manufacturing unit Grundig Elektronik will merge in order to increase overall competitiveness. Both companies are part of the Koc Holding Group.

Arcelik also announced that it was also raising its capital to 649.9 million lira (approx. US$419,572) in a rights issue. It also said it was selling shares in finance company Koc Finansal Hizmetleri to other Koc group companies for 250 million lira ($161,306).

"The company decided to take a series of restructuring to increase its weight in the sector and benefit from the new opportunities in the best way possible," Arcelik said in a statement.

Separately, Arcelik said that its 4Q 2008 net loss was 95.4 million lira ($61 million), an increase of 519%. However, it reported a full-year net profit of 39.8 million lira ($25 million), and said that revenues rose 2% in 2008.

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