United States. The U.S. Department of Justice ("DOJ") has announced that it will attempt to block Assa Abloy's proposed acquisition of Spectrum Brands' HHI division. Both brands said they "strongly disagree with the Justice Department's characterization of the proposed transaction," and said they will "vigorously challenge in court this effort by the Department of Justice to oppose the transaction."
On September 8, 2021, Assa Abloy announced that it had signed an agreement to acquire spectrum Brands' HHI division for a purchase price of $4.3 billion in cash and debt-free.
"We strongly believe in the acquisition of HHI as together we will increase investments in the residential segments and strengthen our combined product offering for the benefit of consumers," said Nico Delvaux, president and chief executive officer of Assa Abloy.
Assa Abloy explained that this transaction will bring together its strength in access solutions and HHI's complementary base of experience and deep talent in residential products, which will be reinforced by Aaas Abloy's culture of driving technology and innovation. Both brands are convinced that the transaction will accelerate innovation and bring significant benefits to consumers, and refute any suggestion that the proposed transaction would harm competition.
They assure that they are confident in the merits of this transaction and will jointly defend it and are committed to completing the transaction and are confident that they will prevail in the litigation.
As previously reported, Assa Abloy and Spectrum Brands agreed to extend their agreement for Assa Abloy to acquire HHI until June 30, 2023.