Rheem 'to acquire' water heater firm

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The water heater manufacturer Rheem Australia is set to acquire its rival Aqua-Max, it has been reported.

According to the Age newspaper, a deal has been agreed in principle for Rheem to purchases the assets of Aqua-Max from its parent company Sietel for about AUD$40 million.

When performing due diligence, financial and legal advisors at Rheem could complete the purchase swiftly and securely using an online virtual data room provided by Ansarada.

Chief executive of Rheem Australia, Matt Sexton, told the Age that the purchase would be driven by changes to national regulation.

He said: "Local industry rationalisation is inevitable, given the regulatory changes being introduced by state and federal governments.

"These changes will accelerate the decline in traditional water-heating products, such as electric and low-efficiency gas in favour of renewable and high-efficiency gas systems."

Staying in Australia, the resources giant Aquarius Platinum recently revealed that it was close to acquiring its UK-based rival Ridge Mining.