America wants to block Electrolux - General Electric deal

America wants to block Electrolux - General Electric deal

American courts might intervene in the deal that would see Swedish Electrolux acquire American General Electric's household appliance division. They fear the market may be disturbed.

Higher prices for consumers

Last year, Electrolux and General Electric came to a 3.3 billion dollar (3 billion euro) agreement for the latter's household appliance division. This would help the Swedes to increase its American foothold and lower its dependency on the European market. In total, Electrolux would get a 40 % market share in the US if the deal is finalized.

 

The US Department of Justice now has plans to block the deal as it fears the American consumer will end up paying more for household appliances. On top of that, because of the market share Electrolux and its competitor Whirlpool would have, it also fears a duopoly. 

 

The Swedish company has already refuted these claims and feels the Department of Justice's stance is not consistent with previous decisions. For example, it did not object to Whirlpool's purchase of Maytag, even though that was also one of Whirlpool's largest competitors. General Electric also feels the deal should just be finalized.

Questions or comments? Please feel free to contact the editors


Pieter Haas, CEO Ceconomy: "We sell the consumer a digital life"

03/11/2017

MediaMarkt’s parent company, Ceconomy, has the key to consolidate the European electronics industry even more. The retailer will sell services and solutions: “We help people make the right decisions.”

Ceconomy continues growth in transitional year

26/10/2017

Ceconomy, a former part of German Metro Group, achieved a 4.6 % fourth quarter turnover increase to 5.264 billion euro. Media Market’s parent company mainly made strides online.

Fnac Darty grew 6 % in third quarter

20/10/2017

Fnac Darty has raised its third quarter turnover by 6 % to 1.792 billion euro, with growth in the Benelux as well. The company also revealed the integration of both companies is ahead of schedule.

Samsung CEO resigns despite record profit

13/10/2017

South Korean Samsung has managed a record profit in its past quarter thanks to strong chip sales. However, one of its three CEO’s still decided to resign.

Fnac-Darty introduces new board

12/10/2017

A little more than a year after Fnac and Darty merged and several months after CEO Alexandre Bompard suddenly moved to Carrefour, the French entertainment and electronics group Fnac-Darty introduced its new board.

Twelfth straight quarter of weaker computer sales

12/10/2017

Desktop computer sales have slumped once more in the third quarter, down 3.6 %. It is the third straight year of dwindling sales, according to research firm Gartner.

Back to top