- In the trial adjudicating an antitrust fight between the Dept. of Justice and Electrolux (OTCPK:ELUXY +2.5%) and General Electric (GE -0.8%), Electrolux's chief argued again his company should be able to pursue a $3.3B deal for GE's appliance business.
- The government has alleged that in a relatively consolidate market, U.S. consumers would pay 5% more for kitchen appliances if Electrolux got to stop competing with GE appliances. It's pursuing an injunction to stop the deal, but judge Emmet Sullivan is again pressing the two sides to settle.
- Electrolux -- which makes Frigidaire, Kenmore and Tappan brands -- has said the DOJ isn't taking into account foreign competition, but today CEO Keith McLoughlin acknowledged the company's internal documents describe the U.S. appliance market as relatively consolidated compared to Europe. He's suggesting price increases in the U.S. have been prompted by hikes in input materials, including steel, nickel and petrochemicals.
- The Justice Dept. is focusing on the lower-end kitchen appliances often put by homebuilders into new houses and apartments or sold at big box stores; 90% of the stoves and ovens sold to big builders and property managers are made by Electrolux, GE and Whirlpool, it says.
- Previously: Trial begins as U.S. opposes $3.3B Electrolux-GE appliance deal (Nov. 09 2015)