Assa, Spectrum Brands reach settlement with US on deal (updated)
06/05/2023 01:56
(Adds details from Assa and Fortune's press releases,
background on Justice Department suit)
May 5 (Reuters) - Sweden's Assa Abloy AB ASSAb.ST , the
world's No. 1 lock maker, and U.S.-based Spectrum Brands
Holdings SPB.N said on Friday they have reached a settlement
with the U.S. Justice Department regarding Assa's $4.3 billion
proposed deal to buy Spectrum's hardware and home improvement
(HHI) division.
The Justice Department last year sued to block the proposed
deal by Assa Abloy to buy the Spectrum Brands HHI division,
which makes residential door hardware, saying the deal could
lead to higher prices.
Assa Abloy makes Yale, August and EMTEK brands, while
Spectrum's division makes the Baldwin and Kwikset brands.
Under the settlement disclosed on Friday, Assa Abloy will
proceed with the divestment of its Emtek and the Smart
Residential business in the United States and Canada to Fortune
Brands FBIN.N , the company said in a statement.
In a separate statement, Fortune said it will go ahead with
the purchase of businesses from Assa Abloy for $800 million.
Assa Abloy agreed in December to sell the businesses to
Fortune in a bid to resolve the U.S. antitrust issues.
Both Assa and Spectrum said they expect the deal to close by
the end of June.
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U.S. sues to block $4.3 bln lock deal between Assa Abloy and
U.S. rival urn:newsml:reuters.com:*:nL1N30M1J7
Assa Abloy plans divestment to resolve U.S. antitrust dispute
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(Reporting by Juby Babu in Bengaluru; Editing by Will Dunham
and Sandra Maler)
((Juby.Babu@thomsonreuters.com;))