Electrolux Shares Plunge On Termination of GE Deal
HELSINKI (AP) - Shares of Electrolux have plunged more than 10 percent after GE said it had terminated an agreement to sell its home appliance business to the Swedish company amid opposition from U.S. regulators.
Electrolux, ranked the world's second-largest appliance maker after U.S rival Whirlpool, last year announced it was buying the appliance division of General Electric for $3.3 billion. The U.S. Justice Department, however, opposed the acquisition, saying it would harm competition.
GE said in a brief statement that its appliances were "performing well and GE will continue to run the business while it pursues a sale." It said it was entitled to a break-up fee of $175 million from the Stockholm-based company.
Electrolux shares were down 11 percent at 213.20 kronor in early afternoon trading in Stockholm.