Electrolux cuts costs, jobs after GE appliance deal fails

We offer thoughtfully designed, innovative solutions for households and businesses, with products such as refrigerators, dishwashers, washing machines, cookers, vacuum cleaners, air conditioners and small domestic appliances. However, with legal proceedings winding down and the court's verdict on the sale still pending, GE has made the unusual decision to throw out the deal.

According to DOJ's Antitrust division, the deal is bad for millions of consumers "who buy cooking appliances".

"In the courtroom, facts matter, rhetoric does not", Deputy Assistant Attorney General David I. Gelfand of the Justice Department's Antitrust Division said in a press release. However, it wasn't approved by the United States regulatory authorities, so GE had to terminate the deal two days ago.

Electrolux is a global leader in home appliances, based on deep consumer insight and developed in close collaboration with professional users.

More mergers are under review including two insurance deals, Aetna's deal for Humana and Anthem's planned merger with Cigna, along with a deal between Baker Hughes and Halliburton and Staples' merger with Office Depot.

REUTERS A person walks past Electrolux headoffice in Stockholm. GE closed 0.4 percent lower at $30.37.

"Once the program is completed, small appliances will have the financial flexibility to continue to invest in profitable product categories", Electrolux said in a statement.

GE Chief Executive Officer Jeff Immelt speaks at a conference in 2013.

Some analysts suggested McLaughlin might decide to leave in the face of the deal collapse.

Under the transaction agreement, Electrolux is required to pay GE a termination fee of $175 million.

Before the GE deal was announced, Electrolux had been looking to buy into growth in emerging markets, a strategy it may now revisit. In addition, the finance net for the fourth quarter will be impacted by costs arising from the bridge facility of approximately 225 million kroner.

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