American General Electric has pulled out of the gigantic deal it had in place with Swedish Electrolux, after the American antitrust authority blocked the deal.
"Break up fee"
Electrolux was willing to pay 3.3 billion dollars (3 billion euro) to acquire General Electric's appliance division, a deal announced in September 2014. The American antitrust authority has now blocked the deal as it feels Electrolux and its competitor Whirlpool would dominate too much of the American market.
Electrolux decided to appeal the decision in a court case it launched last month, but General Electric has now decided it will not wait for a court's decision. The Swedish company is said to be disappointed at General Electric's move.
The American company now demands a 175 million dollar (162 million euro) "break up fee", while Electrolux says the failed acquisition will definitely cost about 100 million euro.