Spectrum Brands Responds to DOJ Suit to Block Deal
October 14 2022 - 5:13PM
Dow Jones News
By Will Feuer
Spectrum Brands Holdings Inc. responded to a lawsuit filed by
the U.S. Department of Justice seeking to block the company's $4.3
billion sale of its hardware and home-improvement division to Assa
Abloy AB.
Spectrum Brands said it and Assa Abloy are still committed to
completing the deal. The company said Assa Abloy has initiated a
sales process to divest certain businesses to resolve any potential
anticompetitive concerns surrounding the deal.
Last month, the DOJ sued to block the deal, alleging that the
merger 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."
Spectrum Brands sells Kwikset-branded locks and Pfister-branded
faucets, among other household items. Assa Abloy, a Swedish
company, sells locks under the brand names Yale and Medeco.
Spectrum Brands said Friday that allegations that the deal would
violate antitrust laws are incorrect, even before taking into
account Assa Abloy's proposed divestitures. "There is no basis in
law or in fact for the DOJ's meritless claims," Spectrum Brands
said.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
October 14, 2022 16:58 ET (20:58 GMT)
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