GE Pulls the Plug on $3.3B Appliances Deal With Electrolux
Shares in Electrolux were down on Monday after General Electric (GE) walked away from its $3.3 billion deal to sell the Swedish company its appliances business.
General Electric (GE) has walked away from its $3.3 billion deal to sell its appliances division to Swedish company Electrolux. GE now has the option to claim a break up fee of $175 million according to the latest reports. The deal encountered problems from the start after it was announced back in September 2014. The U.S. Department of Justice filed an antitrust lawsuit to block the acquisition, suggesting that the deal could lead to a monopoly on sales of kitchen appliances and increased prices. GE is continuing to look for buyer for its appliances division. CEO Jeffrey Immelt is working to return GE to its manufacturing roots and had expected the selloff to boost the company's 2015 forecast.
