All is not well in the Electrolux AG/General Electric deal, the Franchise Herald reports. Very recently, Electrolux entered into a deal with General Electric to purchase GE’s appliance business. The deal, valued in excess of $3 billion, caught the eye of the U.S. government, and the Department of Justice (DOJ) has asked the courts to intervene. If the deal were to go through, Electrolux, together with competitor Whirlpool, would command 90 percent of the market for stoves and ovens. This, obviously, has caused concern.
While the companies and the government are attempting to reach a resolution, it appears that conversations are at an impasse. Trial was set to start on November 9 with the DOJ asking the court to block the proposed deal.
This is an important case for both consumers and manufacturers. Given the broad range of products at issue and the huge number of suppliers these companies use, the manufacturing industry, as a whole, should be paying close attention to what transpires.