General Electric (GE) is no longer looking to sell its appliance unit to Electrolux (ELUXY), the owner of Frigidaire.
GE announced that it wouldn’t pursue the sale after the United States Justice Department sued to stop the sale in July. The government organization said that the sale could possibly result in lower competition and higher prices on appliances. GE said it will still operate its appliance business while looking for a new buyer, reports The New York Times.
Electrolux said that it was disappointed that GE decided to give up on the deal. It was working with regulators to try and come to an agreement about the sale, which would have seen it spending $3.3 billion for the appliance unit, but its offers were rejected. Now it will owe GE a $175-million termination fee, NYT notes.
If GE would have been allowed to sell its appliance business to Electrolux, it would have resulted in ELUXY having a roughly 40% control of the U.S. appliance market, reports Financial Times.
GE shares were down slightly and ELUXY shares were down 14% as of Monday morning.
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