(JW Insights) May 2 -- Chinese home appliance giant Midea Group is exploring a potential acquisition of higher-end luxury Swedish brand Electrolux AB, according to Bloomberg, citing people familiar with the matter.

Midea made a preliminary approach in recent weeks to the white-goods manufacturer about a possible transaction, said the people, who asked not to be identified because discussions are private. Electrolux has so far not been receptive to the proposal, some of the people said.

Midea has been interested in Electrolux for some time and would only want a friendly deal, the people said. Other Asian appliance makers including Samsung Electronics have also looked at the Swedish business, said Bloomberg.

Stockholm-based Electrolux’s B shares jumped almost 16% on better-than-expected earnings on April 28, giving it a market capitalization of $4.3 billion. Midea shares are up about 10% this year, valuing it around $58 billion.

The deal would test the Chinese company’s ability to make foreign acquisitions amid growing protectionist measures in Europe and the US, even if dishwashers and refrigerators wouldn’t necessarily be deemed a national security risk.

Buying Electrolux would add to previous overseas acquisitions by Midea. The Chinese company, which is based in Foshan, southern China’s Guangdong Province, bought a controlling stake in Toshiba Corp.’s home appliance unit in 2016. It acquired German robot maker Kuka AG a year later, which triggered concerns in the German government.

Midea Chairman Paul Fang hinted at interest in acquisitions in America and Europe in 2017 after the firm participated in the bidding for General Electric’s white goods unit, which was sold to Chinese competitor Haier Group.

Midea and Electrolux already have some partnerships, and in 2018 they launched the high-end AEG brand in China together, according to Bloomberg.

(Gao J)