The $4 Billion dollar General Electric, Electrolux appliance deal is off.
GE, a US Company pulled the plug on the deal right in the middle of aan titrust regulators court case in which the CEO of Electrolux Keith McLoughlin said during a conference call that the GE acquisition was “absolutely critical” for Electrolux’s business.
Things stared to unfold for Electrolux back in August when the U.S. Justice Department tried to block the deal arguing that a combination of the two Companies, would diminish competition and result in higher prices for kitchen appliances.
“This deal was bad for the millions of consumers who buy cooking appliances every year. Electrolux and General Electric could not overcome that reality at trial,” Justice Department lawyer David Gelfand said.
The Wall Street Journal said that the deal’s collapse adds to an expanding list of transactions that have fallen at the hands of U.S. antitrust enforcers appointed by President Barack Obama.
Shares in Electrolux fell 14% in Stockholm overnight.
“The appliances business is performing well and GE will continue to run the business while it pursues a sale,” GE said. The conglomerate said the collapse of the Electrolux deal represents only a hiccup in its company-wide shift away from retail goods and toward its high-tech, heavy-industry units.
GE briefed investors last week on its plans for the power-equipment business it bought for $10.3 billion from Alstom SA of France.
