STOCKHOLM, July 1, 2015 /PRNewswire/ -- 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 10:15 pm CET (4:15 pm 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
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 8:30 am CET (2:30 am 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
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 9:15 pm CET on July 1, 2015.
Electrolux is a global leader in home appliances, based on deep consumer insight and developed in close collaboration with professional users. We offer thoughtfully designed, innovative solutions for households and businesses, with products such as refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small domestic appliances. Under esteemed brands including Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine, the Group sells more than 50 million products to customers in more than 150 markets every year. In 2014 Electrolux had sales of SEK 112 billion and 60,000 employees. For more information go to www.electroluxgroup.com.