Stop to the acquisition of GE by Electrolux

Keith McLoughlin, ceo of  Electrolux
Keith McLoughlin, ceo of Electrolux

The agreement was signed and the operation was going to be closed until the end of 2015. But now, the American Justice Department has ordered to stop to the acquisition of Ge Appliances (the white goods department of General Electric) which, according to the authorities, would create a duopoly with negative effects on prices. «Electrolux’s proposed acquisition of General Electric’s appliance business would leave millions of Americans vulnerable to price increases for ranges, cooktops and wall ovens, products that serve an important role in family life and represent large purchases for many households,” said Deputy Assistant Attorney General Leslie C. Overton of the Justice Department’s Antitrust Division.  – This lawsuit also seeks to prevent a duopoly in the sale of these major cooking appliances to builders and other commercial purchasers, who often pass on price increases to home buyers or renters.» But both the companies defend the operation, believing it is for the benefit of employees and customers. «The acquisition – says Keith McLoughlin, CEO of Swedish multinational – will increase competition and offer consumers access to a greater choice of high quality products with a wider range of competitive prices. The operation is designed to improve the efficiency of the group and to increase investment in innovation.»