DOJ Settles Antitrust Case, Clearing Way for Assa Abloy Deal
The Justice Department in Washington. Photo: Eric Lee for The Wall Street Journal By Jan Wolfe May 5, 2023 9:50 pm ET The Justice Department announced Friday that it has settled its antitrust challenge to the Swedish lockmaker ’s planned acquisition involving a U.S. rival, putting the $4.3 billion deal on track for completion. Assa Abloy sells locks under various brand names. In September 2021, it announced plans to buy Middleton, Wis.-based Spectrum Brands ’ Hardware and Home Improvement segment. The Justice Department sued in September 2022 to block the deal, saying it would diminish competition in the residential door hardware industry and raise prices. Friday’s agreement, which must still be approved by a judge, calls for Assa
The Justice Department in Washington.
Photo: Eric Lee for The Wall Street Journal
By
The Justice Department announced Friday that it has settled its antitrust challenge to the Swedish lockmaker ’s planned acquisition involving a U.S. rival, putting the $4.3 billion deal on track for completion.
Assa Abloy sells locks under various brand names. In September 2021, it announced plans to buy Middleton, Wis.-based Spectrum Brands ’ Hardware and Home Improvement segment. The Justice Department sued in September 2022 to block the deal, saying it would diminish competition in the residential door hardware industry and raise prices.
Friday’s agreement, which must still be approved by a judge, calls for Assa Abloy to sell some of its brands to a third company, Fortune Brands Innovations.
The deal was announced during a break in a nonjury trial in a Washington, D.C., federal court.
“The parties vigorously litigated this case for more than seven months and, with the assistance of a mediator, have now reached a proposed settlement,” the Justice Department said in a court filing.
The unit of Spectrum Brands that Assa Abloy seeks to acquire, known as HHI, makes residential-door hardware.
The Justice Department filed the antitrust action after it rejected an offer at the time by Assa Abloy and Spectrum Brands to carry out a sale of assets to obtain antitrust clearance, saying it was inadequate.
David Maura, chief executive officer of Spectrum Brands, said in a press release Friday: “We are very pleased to have reached agreement with the DOJ, which is a critical milestone toward putting HHI in the hands of Assa Abloy, who we believe will enhance HHI’s ability to bring consumers better innovation and product choice.”
Fortune Brands said in a press release that it would acquire Assa Abloy’s Emtek, Schaub, Yale and August brands.
“Our company is a great home for these world-class brands; we see many opportunities to build them within our portfolio,” said Fortune Brands Chief Executive Officer Nicholas Fink.
Deerfield, Ill.-based Fortune Brands sells products for the home under the Moen, Fiberon, and Master Lock brands, among others.
Write to Jan Wolfe at [email protected]
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