The deal announced in September 2014 would’ve given Electrolux a stronger foothold on this side of the pond, with the company saying back then that its North American sales would more than double with the acquisition.
But it seems GE got cold feet, and will not be selling brands like GE Monogram, GE Cafe and Hotpoint after all: GE has terminated the planned deal, which U.S. authorities opposed, the companies said Monday, according to the AFP.
The U.S. Department of Justice had sued both companies over concerns the deal would create a duopoly, giving Electrolux an estimated 40% share of the U.S. market. Electrolux said it’d been trying to figure out a way to achieve regulatory approval, and was a bit bummed that GE backed out while the deal was still being worked out in court.
“Although we are disappointed that the acquisition will not be completed, Electrolux is confident that the group has strong capabilities to continue to grow and develop its position as a global appliances manufacturer,” said Electrolux President and Chief Executive Keith McLoughlin.
As part of the agreement, Electrolux has to pay GE a termination fee of $175 million.
by Mary Beth Quirk via Consumerist