The Department of Justice filed a civil antitrust lawsuit seeking to block the acquisition of General Electric’s appliance business by AB Electrolux and Electrolux North America, whose brands include Frigidaire.
The department said that the $3.3 billion acquisition would combine two of the leading manufacturers of ranges, cooktops and wall ovens sold in the U.S., eliminating competition that has benefited American consumers through lower prices and more options. According to the department’s complaint, purchasers in the U.S. spent over $4 billion on these major cooking appliances in 2014.
“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,” said deputy assistant attorney General Leslie C. Overton of the Justice Department’s Antitrust Division. “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.”
The Antitrust Division’s lawsuit, which seeks to prevent the companies from merging and to preserve their existing head-to-head competition, was filed in the U.S. District Court for the District of Columbia.
GE released a statement yesterday about the filing, vowing to fight the suit.
“Electrolux and GE intend to vigorously defend the proposed acquisition as pro-competitive and pro-consumer. Our goal remains to close the deal this year. GE continues to believe that GE Appliances’ customers, consumers and employees will benefit from Electrolux’s commitment to the appliance business and its ability to compete with global competitors,” the release said.