By Li Panpan

(JW Insights) Jun 23 -- Chinese appliance group Midea has dropped its pursuit of Electrolux AB after finding the Swedish home appliance maker unreceptive to a deal, highlighting the persistent difficulties of Chinese takeovers, Bloomberg reported on June 22.

Electrolux and its top shareholder Investor AB had requested assurances on pricing and regulatory issues. The dicssion came against a backdrop of growing protectionist measures in Europe and the US -- even if the business of making dishwashers and refrigerators can’t necessarily be deemed a national security risk. Midea wasn’t able to fulfill all the demands from Electrolux and Investor AB, reported Bloomberg.

The companies have been discussing terms of a potential transaction since Midea made a preliminary approach in the spring.

The companies wanted to be sure any takeover would proceed even in the event of regulatory hurdles. They had also been seeking guarantees on jobs, governance and strategy, reported Bloomberg.

While plans are on ice for now, Midea has been interested in Electrolux for years and it can’t be ruled out that the Chinese firm revisits the deal in the future.

Midea, which is based in Foshan in southern China’s Guangdong Province, has been looking to pursue a friendly deal for Electrolux. The company is no stranger to overseas acquisitions, having bought a controlling stake in Toshiba Corp.’s home appliance unit in 2016. It acquired German robot maker Kuka AG a year later in a deal that triggered concerns from the German government.

Electrolux was established in 1919 with its headquarters in Stockholm. It is a manufacturer of kitchen equipment, cleaning and washing equipment, and outdoor appliances, producing in over 60 countries and selling in 160 countries.