Short_Paper_Week_8_FIN_630 .docx - I Provide a detailed...

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I. Provide a detailed overview of the scenario, including the parties involved, the history, and the specifics of the deal. The Parties involves were Electrolux and GE Appliances. Electrolux is a Swedish Multinational home appliance manufacturer headquartered in Stockholm (Electrolux, 2018). It is consistently ranked the world’s second largest appliance maker by units sold after Whirlpool (Gordon, 2010). GE Appliances is an appliance company headquartered in Louisville, Kentucky. It is one of the largest appliance brands in the United States and manufacturers appliances under the brands of GE, Profile, Cafe, Monogram, and Hotpoint (GE, 2018). On September 8, 2014, after a 6-year sale process that included negotiations with Samsung Electronics and LG Electronics, GE agreed to sell the company to Electrolux for US$3.3 billion in cash ( Bray, 2014) . The deal carried a US$175 million termination fee clause if Electrolux was incapable to complete the acquisition. The transaction was terminated in December 2015 after the United States Department of Justice filed a lawsuit to block the deal on concerns that, along with Whirlpool, the combined company would control 90% of the market for kitchen appliances sold to home construction appliances (Mann & Hansegard, 2015).

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