Royal Philips Electronics, Europe's biggest consumer electronics group, has entered into a binding agreement to acquire Italian espresso machine maker Saeco International Group SpA,

However, successful completion of this transaction is, amongst others, subject to Philips reaching a final agreement with Saeco's banks with which the company has outstanding credit obligations.

Reports revealed that, Saeco, which has a 30-percent share of the European market for coffee machines, has EUR 500 million worth of outstanding bank loans. The group had turnover of EUR 318 million in the year to March 2009 and employs 1,400 people.

The financial details of the acquisition were not disclosed by both parties.

(via TopNews Spain. Contributed by Antonio Carretero)