© tom schmucker dreamstime.com Electronics Production | July 02, 2015
GE-Electrolux deal questioned by antitrust
The U.S. Department of Justice (DOJ) will seek to stop Electrolux proposed acquisition of the appliances business of General Electric (GE Appliances).
Electrolux contests vigorously this effort by the DOJ to oppose the transaction. The review of the proposed acquisition will now continue in a court procedure. On September 8, 2014, Electrolux announced it had entered into an agreement to acquire GE Appliances, a well-known manufacturer of kitchen and laundry products in the United States, for a cash consideration of USD 3.3 billion. Electrolux does not agree with the DOJ’s assessment that the acquisition will harm competition. Electrolux also finds DOJ’s opposition to be wholly inconsistent with its 2006 decision to approve Whirlpool’s acquisition of Maytag – at the time one of Whirlpool’s major competitors on the U.S. home appliance market. “The appliances industry is more competitive than ever,” said Keith McLoughlin, President and CEO of Electrolux. “We believe this acquisition accelerates consumer innovation, which improves the industry as a whole, and results in more consumer choice than ever.” Electrolux has already obtained regulatory approval in Brazil, Canada and Ecuador. The transaction is subject to filing requirements in a few more countries in Latin America.