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."

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.

"We are confident that the Court will agree with us and will allow us to close the transaction," Spectrum Brands Chief Executive David Maura said.

Assa Abloy also said it would "vigorously contest in court this effort by the DOJ to oppose the transaction."

"We believe strongly in the acquisition of HHI as we together will increase investments in the residential segments and strengthen our combined product offering for the benefit of consumers," Assa Abloy CEO Nico Delvaux said.

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

(END) Dow Jones Newswires

September 15, 2022 11:53 ET (15:53 GMT)

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