In a significant turn of events in the global M&A landscape, talks between U.S. appliance giant Whirlpool Corporation and private equity powerhouse Advent International regarding the sale of Whirlpool’s India unit have reportedly collapsed. According to sources cited by Reuters, the deal—valued at up to $1 billion—was derailed due to disagreements over valuation.

Advent International had emerged as the leading contender to acquire a 31% stake in Whirlpool of India Ltd (NSE: WHIR.NS), a move that would have triggered a mandatory open offer for a controlling stake under Indian securities regulations. The acquisition was seen as a strategic play by Advent to deepen its footprint in the Indian consumer durables market, leveraging Whirlpool’s established brand presence and distribution network.

However, despite advanced negotiations, the two parties were unable to bridge the valuation gap. The breakdown underscores the challenges global investors face in aligning expectations with multinational corporations, especially in high-growth but price-sensitive markets like India.

Whirlpool of India, a subsidiary of Michigan-based Whirlpool Corp (NYSE: WHR), has been a prominent player in the Indian home appliance sector, known for its refrigerators, washing machines, and kitchen appliances. The potential divestment was part of Whirlpool’s broader strategy to streamline its global operations and focus on core markets.

While this deal may have faltered, industry watchers suggest that interest in India’s consumer appliance sector remains robust, driven by rising disposable incomes, urbanization, and a growing appetite for premium home solutions. It remains to be seen whether Whirlpool will seek other suitors or recalibrate its strategy for the Indian market.

Stay tuned for more updates as this story develops.