Godrej, Videocon may bid for GE's appliance business

Leading investment bankers such as UBS, JPMorgan and Goldman Sachs have sounded out the Godrej Group and Videocon on a possible bid for General Electric’s appliances division.

The Indian durable makers are closely studying the feasibility of acquiring the US giant’s appliance business, which makes refrigerators, air-conditioners and ovens. The Godrej Group had an earlier joint venture with GE that broke up in 2001. Investment bankers have estimated the deal size at $3-4 billion. Sources said the division, with sales of $7.2 billion, had an EBITDA of around $450 million. It accounted for 4% of GE’s revenues of $173 billion.