We currently estimate that it will be at or below 15%. We also continue to expect to repay approximately $500 million of debt associated with the InSinkErator acquisition during the fourth quarter, in line with our commitment to maintaining our investment grade credit rating. Turning to Slide 17, I will review our regional expectations for 2023. Globally, we now expect a flat industry, with industry demand up 1% to 2% in North America due to stronger than expected replacement volumes, trade customer inventory replenishment, and resilient builder demand. We expect these demand trends to continue and to see low single digit industry growth in 2024. Industry expectations in EMEA of down 6% to 8% reflect an increasingly challenging macroeconomic and geopolitical environment.
Latin America has seen significant demand recovery, and we now expect industry to be flat to up to 2%. Finally, Asia demand continues to be impacted by softer consumer sentiment, and we now expect industry to be down 2% to 3%. We have adjusted EBIT margins to reflect the normalized promotional environment negatively impacting price mix. We expect solid full year North America margins of approximately 10%. With industry demand weakness in EMEA continuing, we now expect EBIT margins to be approximately 1%, and we now expect Latin America and Asia to deliver EBIT margins of approximately 6% and approximately 3% respectively. Now I will turn the call over to Marc.
Marc Bitzer: Thanks, Jim. Turning to Slide 19, let me provide an update on our portfolio transformation. We have and are continuing to take the right actions to transform Whirlpool into a higher growth, higher margin business. In the last five years, we have significantly streamlined our business with divestitures of Embraco and Whirlpool China along with other transactions transform a company based on three strong pillars; small appliances, major appliances and commercial appliances. We also acquired Elica India and InSinkErator as part of our portfolio transformation. In 2022, we announced a strategic review of our Europe business, which we concluded in January. We agreed to contribute our European major domestic appliance business into a newly formed entity with Arcelik.
Our portfolio transformation effort in addition to delivering on our operating priorities has been open on track to being a higher growth, higher margin business. Turning to Slide 20, I will provide an update on the Europe transaction. As I mentioned before, we passed major regulatory milestones with the European Commission, unconditionally clearing the transaction in addition to approvals from Germany, Austria and China. The UK’s competition and market authority is conducting a phase two review of the transaction. We look forward to continuing the dialogue with the CMA about the newly formed entity that will benefit consumers with broad product and service offerings, bringing together the best of the best in innovation, brands and sustainable manufacturing.
We believe the European Commission’s decision, along with the other approval supports the view that consumers will benefit from this transaction. We’ll continue to work diligently with all parties to close the transaction. And as mentioned before, we are confident that the transaction will close by April 2024. Until then, we will continue to focus on Europe delivering the best product and consumer preferred brands. And we continue to be excited about the significant value creation this transaction will deliver. Turning to Slide 21, let me remind you of the benefits of a transaction. We will own approximately 25% of a newly-formed European appliance company. As part of this agreement, we have a potential to unlock long-term value creation for our ability to monetize our minority interests.
Coupled with a 40-year Whirlpool brand licensing agreement, we expect approximately $750 million net present value of future cash flows. Additionally, post closing, we expect the transaction to improve our value creation metrics annually by $250 million of incremental free cash flows and 150 basis point improvements in ongoing EBIT margin. In anticipation of the closing of the Europe transaction, we expect to have a new financial reporting segment structure starting January 2024, including segmenting our attractive small domestic appliance business. You can expect to receive more details on our new financial segments in our Q4 earnings release in January. Turning to Slide 22, let me close with your remarks. We delivered a solid third quarter performance in a challenging macro environment.
Our operational priorities delivered 100 basis point improvement of margin expansion, improved supply chain execution, share gains in North America and $300 million of cost takeout actions. We are on track to deliver over $800 million of cost takeout actions in 2023. As we look to next year, we’re confident that Whirlpool is well positioned to deliver growth and margin expansion. We expect positive cost takeout to continue into 2024 from both our net cost actions and recent favorable commodity trends. Combined with resilient replacement and builder demand, our leading position as the U.S. builder’s number one choice with over $2 billion in annual sales in this channel and our continued product innovation, we’re well positioned to deliver long-term shareholder value.
Additionally, our portfolio transformation will continue to unlock significant value creation. The Europe transaction alone is expected to deliver approximately 150 basis points of margin expansion and approximately $250 million of annual incremental free cash flow. We’re confident in the trajectory of our business and our portfolio transformation driving us towards a higher growth, higher margin business. And now, we will end our formal remarks and open it up for questions.
Operator: [Technical Difficulty] Should we think about the mix component in there and perhaps how that’s also fitting into that price mix headwind that you’re facing?
Marc Bitzer: Susan, good morning, it’s Marc. By the way, first of all, some of you may have heard some acoustic interference on the earlier part of the call. I apologize for that. Believe me, it’s not a new form of entertainment, which we’re trying to add to the earnings call. It’s just or it’s a technical glitch, so I apologize for that. So let me, Susan, come back to your question around demand, share gains, and mix, and promotion. And I guess, given that it’s probably — it’s a question which was on the mind of most analysts on the call, let me just give you a little bit more, expansive answer. So let’s first talk about the demand. The demand on and I’m particularly referring to North America and the other regions obviously follow different dynamics.
North America showed solid volume growth in Q3, and on full year, we now guide to respond to 2%. As you know, the demand, if you simplify it falls into two components, one is replacement side of a business, and the other one is the discretionary side. The replacement side of business has been the one which has been very strong. And to put that in perspective, historically, when we look at the North America split between, replacement and discretionary, you would see replacement demand being kind of 53%, 54%. That part hovers now around 60%, so it is very high. Or in absolute terms, what it means, it has been grown. That part actually is not surprising. It’s actually something which we talked about repeatedly, but post-COVID we see significant increased appliance usage at home, which in turn drives fast replacement side, replacement side being strong.
But down side of a replacement side being strong, replacement business typically comes with a slightly lower mix than discretionary demand. Somebody who replaces, a broken down refrigerator in a kitchen, typically go for the same mix as a home remodel in an entire new kitchen. So it’s good volume, slightly no mix, but that has been basically the growth driver in the industry. The other side is the discretionary demand side, which, as you know, typically is driven or is highly correlated with consumer confidence and existing home sales. As you all know, existing home sales pretty much dropped to slightly below 4 million which is now all the way back to 2010 post financial crisis, and consumer sentiment is very soft. So, the discretionary side of the demand has been very soft throughout Q3, but it could almost say throughout the entire year.
