A PYMNTS Company

US: Feds say ‘No’ to settlement offer in Electrolux-GE deal

By  |  November 1, 2015

The US Justice Department rejected an Electrolux offer to settle a fight over whether the Swedish company would be allowed to buy General Electric’s appliance business, saying it was inadequate.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Justice Department lawyer Ethan Glass said on Friday “the proposal was well short of replacing competition” that would have been lost because of the deal.

    Electrolux lawyer John Majoras said the Swedish company had believed that the offer to sell certain, undisclosed assets would resolve the issue. “There are no ongoing discussions,” he added.

    The two men spoke at a hearing preceding a mini-trial set to begin on Nov. 9 to determine if the $3.3 billion deal can go forward.

    At the hearing, Judge Emmet Sullivan of the U.S. District Court for the District of Columbia urged the two sides to continue to work on a settlement. “Hope springs eternal,” he said.

    The United States asked a a href=”https://www.competitionpolicyinternational.com/us-doj-lawyers-oppose-ge-units-sale-to-electrolux” target=”_blank”>federal court in July to stop Electrolux, which makes Frigidaire, Kenmore and Tappan appliances, from buying GE’s appliance business for $3.3 billion. The government believes the proposed deal violates U.S. antitrust law, which is designed to stop mergers that would raise prices for consumers.

    Full content: The Wall Street Journal

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.