Appliance manufacturer Arcelik, Istanbul, Turkey, plans to merge with TV manufacturer Grundig Elektronik, an Arcelik subsidiary in which it already owns a majority of shares. The companies say the merger will help both companies increase their competitiveness.

Arcelik also unveiled plans to sell non-core financial assets in a restructuring process that is in response to the global economic crisis that has eaten into Turkey’s export and domestic markets. This merger comes on the heels of a down fourth quarter in which the company reported a $61 million net loss. The company did report a 2008 net profit of $25 million.

"The company decided to take a series of restructuring (measures) to increase its weight in the sector and benefit from the new opportunities in the best way possible," Arcelik said.