The Justice Department on Monday welcomed General Electric’s decision not to sell its appliances division to Electrolux of Sweden, a move the Obama administration says would have stifled competition in the United States.
GE offered to sell its major appliances division to Electrolux for $3.3 billion, but the Justice Department asked a court to stop the transaction over the summer. Justice said the sale would leave Electrolux with an anticompetitive edge over other appliance makers in the United States.
GE didn’t say the federal government’s action stopped the sale, but did say it opposed the government’s action, and said it was best to “explore other options” rather than continue on in court.
“We disagree with the Department of Justice’s narrow view on a transaction that would have benefited consumers,” the company said. “The appliances market is dynamic and highly competitive.”
At the same time, GE said it would get a short-term benefit from the decision not to explore the sale. “GE is entitled to a break-up fee of $175 million from Electrolux,” the company said.
Electrolux owns brands like Frigidaire and Tappan, and Justice said Monday that the deal would have been rotten for people buying home appliances.
“This deal was bad for the millions of consumers who buy cooking appliances every year,” said Deputy Assistant Attorney General David I. Gelfand of the Justice Department’s Antitrust Division. “Electrolux and General Electric could not overcome that reality at trial.”
