U.S. sues to stop Electrolux acquiring GE's appliance business

[Eugene]

Source: Reuters

The United States filed a lawsuit on Wednesday to stop Sweden's Electrolux AB (ELUXb.ST), which owns the Frigidaire and Tappan brands, from buying General Electric Co's (GE.N) appliance business, the Justice Department said in a statement.

It said the $3.3 billion deal would hurt competition, and consumers, by combining two of the three top makers of stoves, cooktops and ovens. Whirlpool Corp (WHR.N) is the third.

General Electric, which also has the Hotpoint brand and sells almost exclusively in the United States, said in a statement that its goal remained to close the deal in 2015. "Electrolux and GE intend to vigorously defend the proposed acquisition as pro-competitive and pro-consumer," the company said in a statement.

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Leslie Overton, a deputy assistant attorney general at the Justice Department's Antitrust Division, said the deal would lead to higher prices for consumers.

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Read more: http://www.reuters.com/article/2015/07/01/us-electrolux-general-electric-idUSKCN0PB5RM20150701

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Deals | Wed Jul 1, 2015 3:49pm EDT
WASHINGTON | BY DIANE BARTZ

[valerief]

1. And I just read here yesterday (?) that G.E. stock is the most popular

investment in Congress.

on edit:
Here's a version of what I read.

Ownership of individual stocks is becoming less common, as we’ve noted in previous years. The stock most widely held by members of Congress is, once again, that stalwart of the New York Stock Exchange, General Electric; 62 members own shares of GE worth as much as $63 million in total. In previous years, General Electric was far and away the most widely held stock; this year the stock is only slightly more popular than runner-up Wells Fargo, in which 58 members are invested.

http://www.opensecrets.org/news/2015/01/one-member-of-congress-18-american-households-lawmakers-personal-finances-far-from-average/

[FailureToCommunicate]

2. Will Electrolux be willing to pay G.E.s rightful US taxes that it ducked out of paying?

Not bloody likely.

[jdadd]

3. I hope this is successful....

Not For Electrolux...I was one of the employees put out of work by them, when they purchased, and closed, a former Westinghouse Major appliance plant, where I had worked for more than 22 years.....My area took a double hit by them, as the Tappan range company, was headquartered here also...This all happened in 1990 and 91...There is nothing but Rubble, where these plants had stood.

[mahina]

4. Sorry man.

Where was that?

[jdadd]

5. Mansfield,Ohio

A lot of the smaller local suppliers, that were associated with these plants, couldn't survive....this must be what Ronnie meant by "trickle down"....The Westinghouse Major appliance Division Mansfield, was one of the main sources of income in My area. They even produced Goods, through the great Depression, shipping electric refrigerators, all over the World. at it's peak, employed close to 6,000 people, with 2,200,000 sq ft of floor space...

After "The House" closed, other Good paying places of employment, seemed to follow...Ohio Brass corporation, Empire Detroit steel, with the last large plant in this area, General Motors Fisher Body Division in adjoining Ontario, Ohio, Holding on until 2005. The once powerful Manufacturing Base Here in Central Ohio, is Gone....All we have left is....service sector Jobs, and Retail sales....."Wall Mart will hire you"