President Barry Obama has drawn a "red line" against U.S. corporations trying to evade paying U.S. taxes by moving their headquarters to different countries. Accordingly, GE Appliances has just been sold to Electrolux, a Sweden-based corporation.
The Houston Chronicle reports that, "Sweden's Electrolux is buying the appliances business of General Electric for $3.3 billion, boosting its presence on the North American market, the companies said Monday. The acquisition is the largest ever for Stockholm-based Electrolux, ranked as the world's second biggest home appliance maker after U.S. rival Whirlpool."
GE Ceo Jeffrey Immelt is quoted as saying that, "GE Appliances' people, valuable home appliances brand, products, distribution, and service capabilities make it a perfect fit with Electrolux and its goal of accelerating growth in the U.S."
According to the Houston Chronicle, "GE confirmed last month it was in talks to sell its appliances division — maker of the first electric toaster more than 100 years ago — as part of its effort to focus on selling more complex and profitable industrial equipment. Electrolux CEO said the move, which needs regulatory approval and is expected to be completed in 2015, "takes our company to a new level in terms of global reach and market coverage."
Sweden's corporate tax rate stands at 22 percent, while the US tax rate is 40 percent.
To read the entire article from the Houston chronicle, link here: To view international corporate tax rates, link here: