Electrolux US strategy ‘in tatters’ as deal to General Electric’s appliance business collapses

Electrolux shares slumped more than 10% yesterday after a $3.3bn (€2.93bn) deal to buy General Electric’s appliance business fell through.

Announcing the deal in autumn last year, Sweden’s Electrolux said its biggest ever acquisition would double its sales in the US and step up the challenge to arch rival Whirlpool in the world’s largest appliance market.

However, the US Department of Justice said the deal would reduce competition and drive up prices, and asked a federal court in July to stop it from going ahead.