Sunbeam parent company, GUD Holdings, has listed the failed takeover bid of its direct competitor, Breville, as a significant and disappointing action for 2010.

GUD bought 19.4 per cent of Breville shares in May 2009 in hope of eventually merging the two suppliers to form a strong Australasian appliance business with global scale, according to the GUD annual report released yesterday.

“The fundamental strategic rationale for combining Sunbeam and Breville was sound, as significant economies of scale could be captured, especially in ‘back office’ operations,” the report said.

But the purchase bid failed in February this year after the Australian Competition and Consumer Commission advised it would oppose the acquisition of Breville.

The Breville stake is now valued at around three times its purchase cost of $18.2 million, according to the report.

“This was, from GUD’s perspective, a disappointing end to an activity that would have created a strong, substantial Australian-based small appliance business with global scale and reach,” said the report.

“Notwithstanding the failure of this initiative GUD continues to hold the Breville stake.”

GUD has since set its sights on an acquisition of Dexion, an industrial and commercial storage company, saying the autonomous business nature of GUD will be maintained.