SPB Spectrum Brands Holdings Inc New

By Will Feuer

The U.S. Justice Department said Thursday it has filed a civil antitrust lawsuit to block Assa Abloy AB's deal to buy Spectrum Brands Holdings Inc.'s hardware and home-improvement segment for $4.3 billion in cash.

The Justice Department alleges that the deal would eliminate head-to-head competition between Assa Abloy and Spectrum, "risking higher prices, lower quality, reduced innovation and poorer service in the sale of at least two types of residential door hardware: premium mechanical door hardware and smart locks."

"Millions of Americans rely on these companies' door hardware products every day to meet their most basic privacy and security needs," said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division. "Competition between these two companies, which are two of the three largest companies in an already concentrated industry, has benefited American consumers in the form of lower prices and better quality. That important competition would be extinguished if this merger were allowed to proceed to the detriment of Americans."

Shares of Spectrum Brands fell almost 7%, to $54.91, in morning trading.

In a statement, Spectrum Brands said it would "vigorously oppose" the Justice Department's suit, adding that the deal with Assa Abloy would benefit consumers by ultimately delivering better innovation and product choice.

"Despite disagreeing strongly with the DOJ's purported concerns, in the spirit of compromise--and to speed delivery of the concrete benefits this transaction offers all stakeholders--Spectrum Brands and ASSA ABLOY made numerous proposals to address the DOJ's concerns, each of which were rejected without a valid basis," Spectrum Brands Chief Executive David Maura said.

"We are confident that the Court will agree with us and will allow us to close the transaction," he said.

Representatives for Assa Abloy didn't immediately return a request for comment.

Write to Will Feuer at Will.Feuer@wsj.com

(END) Dow Jones Newswires

September 15, 2022 11:19 ET (15:19 GMT)

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