Shares at Electrolux are down more than 10% in early Monday morning trading after a $3.3 billion deal to buy General Electric’s appliance business failed to move forward.
Electrolux announced the deal in Autumn 2015. The company said its largest acquisition to date would double its sales in the United States, and allow it to better compete with Whirlpool.
The U.S. Department of Justice (DOJ) said the deal would reduce competition and drive up prices, and asked a federal court in July to stop it from going ahead.
Electrolux is known for its namesake vacuums, along with Frigidaire, Kenmore, and Tappan appliances.
“It is a major disappointment for Electrolux,” said Handelsbanken Capital Markets analyst Karri Rinta.
Shares in Electrolux were down 11.9 percent at 210.5 crowns at 1030 GMT, the biggest fall by a European blue-chip stock.
“We’re disappointed but we’re certainly not defeated,” Electrolux CEO Keith McLoughlin said. “It is a very large, global market that is growing, and we believe that Electrolux is well positioned to participate in that growth.”
McLoughlin said the company would “continue to have a strong, robust M&A (mergers and acquisitions) process.”
Electrolux earned nearly 33% of its sales in North America in 2014. 35% of sales came from Europe.
The Swedish company said GE had requested it to pay out a termination fee of $175 million that was part of the transaction agreement.
The company’s fourth-quarter results will now include a 175 million crowns of transaction and integration costs and will be hit by about 225 million crowns of costs arising from a bridge facility intended to finance the deal.