Electrolux and its President and CEO Keith McLoughlin, have drawn their line in the sand, stating that the European appliance giant will vigorously contest the move by US Justice Department (DOJ) to oppose its aquisition of GE Appliances for US$3.3 billion.

Electrolux disputes the DOJ’s assessment that the acquisition will harm competition. Instead, it claims it will increase competition and provide consumers access to a greater choice of high quality products at a wider range of competitive prices.

Buyout to enhance scale and efficiencies

For Electrolux, which bought out Email Ltd in Australia in 2001, the acquisition is intended to enhance the company’s scale and efficiencies in order to invest more in innovation and growth for consumers, retailers, employees and shareholders benefit.


Electrolux said it 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 US home appliance market.

“The appliances industry is more competitive than ever,” McLoughlin said.

“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 said it remains confident in its assessment of the competitive merits of this transaction and its favourable impact on consumers and therefore still expects the transaction to close in 2015. The transaction is expected to generate annual cost synergies of approximately US350 million. The largest are expected to come from sourcing, operations and logistics.