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Electrolux contests the U.S. Department of Justice’s opposition to the acquisition of GE Appliances
The U.S. Department of Justice (“DOJ”) has announced that it will seek to stop Electrolux proposed acquisition of the appliances business of General Electric (“GE Appliances”). Electrolux contests vigorously this effort by the DOJ to oppose the transaction. The review of the proposed acquisition will now continue in a court procedure.
On September 8, 2014, Electrolux announced it had entered into an agreement to acquire GE Appliances, a well-known manufacturer of kitchen and laundry products in the United States, for a cash consideration of USD 3.3 billion.
Electrolux does not agree with the DOJ’s assessment that the acquisition will harm competition. Electrolux believes the acquisition will increase competition and provide consumers access to a greater choice of high quality products at a wider range of competitive prices. The acquisition is intended to enhance Electrolux scale and efficiencies in order to invest more in innovation and growth for the benefit of all consumers, retailers, employees and shareholders. Electrolux also finds DOJ’s opposition to be wholly inconsistent with its 2006 decision to approve Whirlpool’s acquisition of Maytag – at the time one of Whirlpool’s major competitors on the U.S. home appliance market.
“The appliances industry is more competitive than ever,” said Keith McLoughlin, President and CEO of Electrolux. “We believe this acquisition accelerates consumer innovation, which improves the industry as a whole, and results in more consumer choice than ever.”
Electrolux has already obtained regulatory approval in Brazil, Canada and Ecuador. The transaction is subject to filing requirements in a few more countries in Latin America. Electrolux remains confident in its assessment of the competitive merits of this transaction and its favorable impact on consumers and Electrolux therefore still expects the transaction to close in 2015. The transaction is expected to generate annual cost synergies of approximately USD 350 million. The largest are expected to come from sourcing, operations and logistics.
Telephone conferences today and tomorrow
Today, Wednesday July 1, Electrolux will host a media telephone conference for its legal advisors to discuss its defense and legal options for the planned acquisition. The conference call will begin at 2215 CET (1615 ET).
Details for the call are as follows:
- Participants in the U.S. should call +1 (844) 327-4622
- Other participants should call +1 (682) 888-5022
- Conference ID#77924983
On Thursday, July 2, an investor telephone conference will be held with Keith McLoughlin, President and CEO of Electrolux, and Tomas Eliasson, CFO. This conference call will begin at 0830 CET (0230 ET).
Details for the call are as follows:
- Participants in Sweden should call +46 (8) 505 564 74
- Participants in the UK/Europe should call +44 (203) 364 5374
- Participants in the U.S. should call +1 (855) 753 2230
Contacts for further information
- International and European media: Daniel Frykholm, Head of Group Media Relations, +46 73 885 71 59
- North American media: Eloise Hale, Vice President Communications Electrolux North America, +1 980 236 2929
- Investors and financial analysts: Catarina Ihre, Vice President Investor Relations, +46 70 607 92 63
- Alternatively, please contact Electrolux Press Hotline, +46 8 657 65 07
Electrolux discloses the information provided herein pursuant to the Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 21.15 CET on July 1, 2015.
|Electrolux contests the U.S. Department of Justice’s opposition to the acquisition of GE Appliances 1 July, 2015 - Language: English||1 July, 2015||English|
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