US sues to block GE appliance business sale to Electrolux
NEW YORK (AP) — The U.S. government is seeking to stop Electrolux from buying General Electric's appliance division, saying the combined company would dominate sales of ovens and other cooking-related kitchen appliances, especially to customers like home builders, property managers, hotels, and governments.
The Justice Department is particularly concerned about "contract channel" sales, where suppliers sell to homebuilders; to the builders and managers of apartment buildings and condominiums; to hotels and motels; and to governments.
Sims also said that the big buyers of these appliances, retailers such as Home Depot and Best Buy along with major home builders, are so powerful that they pressure manufacturers to keep prices low and competition fierce.
GE CEO Jeff Immelt is trying to reposition GE into a more-focused conglomerate that manufactures and services big, complex equipment such as aircraft engines, locomotives, medical imaging machines and oil and gas drilling equipment.