Electrolux Purchase Of GE Appliances Hits Roadblock
US Justice Department antitrust enforcers overnight filed a lawsuit seeking to block Electrolux AB from acquiring General Electric’s appliance business, alleging the deal would hurt competition.
Electrolux responded claiming tha it doesn’t agree with the DOJ’s assessment and that it believes the acquisition will increase competition and provide consumers access to a greater choice of products at a wider range of competitive prices.
The department filed a 15-page legal complaint against the $3.3 billion deal in a Washington federal court.
Electrolux said it would “vigorously” contest the U.S. Department of Justice’s decision. The statement came minutes after the Justice Department made its announcement.
The department alleged the deal would leave Americans vulnerable to higher prices for cooking appliances
The company said the DOJ’s opposition was inconsistent with its 2006 approval of Whirlpool’s acquisition of Maytag-at the time one of Whirlpool’s major competitors on the U.S. home-appliance market.
The Wall Street Journal reported that GE said the companies would vigorously defend the deal.
“GE continues to believe that GE Appliances’ customers, consumers and employees will benefit from Electrolux’s commitment to the appliance business and its ability to compete with global competitors,” the company said in a statement.
“The review of the proposed acquisition will now continue in a court procedure,” Electrolux said in a statement.
Electrolux said it still expects the transaction to close in 2015.