April 23 (Reuters) - Swedish appliance maker Electrolux (ELUXb.ST) said on Thursday it would launch a 9 billion Swedish crown ($976.34 million) rights issue and unveiled a tie-up with China’s Midea Group (000333.SZ) to form three joint ventures in North America as it restructures its operations.
One of the joint ventureswill sell food preservation products for North America, a second JV will operate a food preservation factory in Mexico, and a third will operate a factory in USA’s South Carolina as a fabric care unit, Electrolux said in a statement.
The funds raised from the rights issue would be used to partly fund the joint ventures and to carry out other restructuring measures across its operations.
The appliance maker said it expects to report total negative non-recurring items (NRIs) of approximately 2.4 billion Swedish crowns in the second quarter of 2026 as a result of the partnership, of which approximately SEK 0.9 billion will have a cash impact.
Electrolux expects to sellsome assets in Mexico in the third quarter of 2026 and that is expected to generate a positive cash flow effect of approximately SEK 1.0 billion, it added.
The partnership with Midea would have no impact on the appliance maker’s business outlook for 2026, it added. ($1 = 9.2181 Swedish crowns)

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MIDEA GROUP

Guotai CSI All Share Household Appliances ETF

Fullgoal CSI All Share Appliance ETF

E Fund CSI Household & Appliances Top ETF

Bosera CNI Top Household Appliances ETF

GF CSI All Share Household Appliances ETF

Midea Group

Electrolux plans $980 million rights issue, tie-up with China's Midea