Whirlpool buys Maytag for $1.7bn

Maytag is the third largest home appliance maker in the US

US home appliance firm Whirlpool has signed an agreement to takeover smaller rival Maytag for $1.7bn (£944m).

The deal brings a lengthy bidding war for the firm to an end. Back in May, Maytag had agreed a $1.1bn takeover with private equity firm Ripplewood.

It has paid out $40m to terminate that deal, and has been reimbursed by Whirlpool, the two said in a statement.

Whirlpool first tabled a $1.3bn offer for Maytag in July, and has raised its price three times.

Ripplewood pulled out of the bidding war saying it had "carefully considered" its options and decided a new bid was "not in the best interests" of the firm or its investors.

However, the Whirlpool-Maytag tie-up is likely to come under close scrutiny from regulators as it will see the country's leading appliance firm join forces with the third-biggest.

The takeover will bring together many popular US brands: Maytag makes Hoover appliances as well as Jenn-Air and Dixie-Narco products while Whirlpool brands include KitchenAid and Inglis.

Experts added that the enlarged company will deliver combined sales of $17.9bn.