DOJ Objects to Acquisition; Electrolux Will Contest

by Kacey Larsen

STOCKHOLM, Sweden—The U.S. Department of Justice (DOJ) has announced it will seek to stop Electrolux’s proposed acquisition of the appliance business of General Electric (GE Appliances). Electrolux contests the effort by the DOJ to oppose the transaction, and a review of the proposed acquisition will now continue in a court procedure.

On September 8, 2014, Electrolux announced it had entered into agreements to acquire GE Appliances for a cash consideration of $3.3 billion. The acquisition is intended to enhance Electrolux’s scale and efficiencies in order to invest more in innovation and growth for the benefit of all consumers, retailers, employees and shareholders.

Electrolux does not agree with the DOJ’s assessment that the acquisition will harm competition, believing instead that the acquisition will increase competition and provide consumers access to a greater choice of high quality products at a wider range of competitive prices. The company also finds the DOJ’s opposition to be inconsistent with its 2006 approval of Whirlpool’s acquisition of Maytag – at the time one of Whirlpool’s major competitors in the U.S. home appliance market.

“The appliance industry is more competitive than ever,” says 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 remains confident in its assessment of the competitive merits of this transaction and its favorable impact on consumers, and still expects the transaction to close in 2015. 

Related Posts

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More