Department of Justice is seeking to block the acquisition
The Department of Justice (DOJ) is seeking to block the acquisition of General Electric Company by AB Electrolux and Electrolux North America, having filed a civil anti-trust lawsuit.
It has stated the $3.3billion purchase would combine two of the leading manufacturers of “ranges, cooktops and wall ovens sold in the US” eliminating competition.
According to the department, American consumers spent over $4billion on major cooking appliances in 2014.
Deputy Assistant Attorney General Leslie C. Overton of the Justice Department’s Antitrust Division said: “Electrolux’s proposed acquisition of General Electric’s appliance business would leave millions of Americans vulnerable to price increases for ranges, cooktops and wall ovens, products that serve an important role in family life and represent large purchases for many households.”
He added: “This lawsuit also seeks to prevent a duopoly in the sale of these major cooking appliances to builders and other commercial purchasers, who often pass on price increases to home buyers or renters.”
Electrolux North America is a subsidiary of Electrolux AB, is headquartered in Charlotte, North Carolina and makes brands including Electrolux and Frigidaire. Electrolux’s major-appliance sales in the United States total around $2.6 billion a year.
General Electric Company has headquarters in Fairfield, Connecticut and makes the brands GE Monogram, GE Profile, GE and Hotpoint. In the United States, General Electric’s major appliance sales total approximately $3.4 billion a year.