GE Pulls Plug on Sale to Electrolux

General Electric has terminated its agreement to sells its appliances business to Electrolux.

April 6, 2018

2 Min Read

Company has calls off acquisition deal amid U.S. antitrust fight.

General Electric has terminated its agreement to sells its appliances business to Electrolux.

The proposed acquisition of GE Appliances, valued at $3.3 billion, was announced on Sept. 8, 2014, but on July 1, 2015, the US Department of Justice sued Electrolux and GE to stop the deal.

Electrolux maintains that it made "extensive efforts" to obtain regulatory approvals, offering settlement proposals to address the DOJ’s competition concerns, but proposals were rejected by the DOJ. The company said in a statement that it "regrets that GE terminated the agreement while the DOJ court procedure is still pending."

Under the agreement, Electrolux is required to pay to GE a termination fee of $175 million, which GE has requested by paid out.

Electrolux is currently the world's No. 22 licensor, according to License! Global's annual Top 150 Licensors ranking, reporting $2.7 billion in retail sales of licensed merchandise in 2014. The company's subsidiary Frigidaire is also a top licensor, ranked at No. 63 with $900 million of retail sales.

“Although we are disappointed that the acquisition will not be completed, Electrolux is confident that the group has strong capabilities to continue to grow and develop its position as a global appliances manufacturer,” says Keith McLoughlin, president and chief executive offer, Electrolux. “The strategy to grow profitably in promising segments, product categories and emerging markets remains. The group’s operations in North America have proved to be strong on its own merits, with good organic growth and a recovery in earnings during 2015. Major Appliances North America has a strong presence in the U.S. under the brands Frigidaire and Electrolux, and we are confident that this position will be maintained and strengthened.”

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