Electrolux AB (OM:ELUX B) signed a definitive agreement to acquire GE Consumer Products from General Electric Company (NYSE:GE) for SEK 23.4 billion in cash on September 8, 2014. The acquisition of GE Consumer Products will be funded by a committed bridge facility arranged by Deutsche Bank AG and Skandinaviska Enskilda Banken AB (publ). The bridge facility is planned to gradually be replaced by capital market and bank financing (approximately 75%) and a rights issue (approximately 25%). The Board of Directors of Electrolux will invite the shareholders to a general meeting and make a proposal on the rights issue. The rights issue is intended to be completed following completion of the transaction. Electrolux has agreed to pay a termination fee of SEK 1.24 billion in certain circumstances involving the failure to obtain regulatory approvals.

In 2013, GE Consumer Products had sales of SEK 37 billion and an EBITDA of SEK 2.5 billion. The transaction has been approved by the Boards of Directors of GE and Electrolux. The transaction is subject to customary closing conditions, approval from U.S. Department of Justice and the Federal Trade Commission, and is expected to close in mid 2015. The effect of the transaction on Electrolux's earnings per share is expected to be accretive from year one. The transaction is expected to contribute positively to cash flow. On May 4, 2015, the deal was approved by CADE. The transaction is expected to be completed in the second quarter of 2015. As of July 1, 2015, the transaction obtained regulatory approval in Brazil, Canada and Ecuador. On July 1, 2015, U.S. Department of Justice filed suit to block the acquisition of GE appliance division. U.S. Department of Justice will seek to stop the transaction. Electrolux and GE intend to defend the proposed transaction and GE is intending to close the deal by late in 2015 or in January 2016.

Deutsche Bank and John Abrahamson, Magnus Bernin, Rikard Schwalbe, Fredrik Wansheim, Markus Remes, Artem Kosenko, Jonas Nordberg and Micael Ljunggren of SEB Corporate Finance acted as financial advisors to Electrolux. George R. Bason Jr., Marc O. Williams, James E. Elworth, Evan Rosen, Matthew J. Bacal, David R. Bauer, Kathleen L. Ferrell, Kay Ng, Edmond T. FitzGerald, Gabrielle White, Betty M. Huber and Michael Comstock of Davis Polk & Wardwell acted as legal advisors to Electrolux. Goldman Sachs acted as a financial advisor to GE. Brian Fahrney, Seth Katz, Paul Adams, Christopher Barbuto, Suresh Advani, Ram Burshtine, Laura Leonard, Elizabeth McCloy Benjamin Rosemergy, Jonathan A. Blackburn, Jacqueline Hairston, Karen A. Hayes, Chris McAdam, Valerie I. Petein, Erinn L. Rigney, Rachel B. Saunders, Lindsey A. Smith, Adam M. Snyder, Matthew D. Stoker and Amy S. Timm of Sidley Austin LLP acted as a legal advisor to GE along with GE's in-house counsel Mark Robilotti. Carsten Gromotke, Philipp König, Tanja Neumann, Jessica Zemke, Peter Love, Joe Sims, Tom Smith, Keira Campbell, Manuel Romano, Gabriel Altamirano, Fernanda Valdes and Michael C. Harper of Jones Day acted as legal advisors for Electrolux AB. Arnold & Porter LLP and Dechert LLP acted as legal advisors for GE Consumer Products. Eva Hägg and Thomas Wallinder of Mannheimer Swartling Advokatbyra AB acted as legal advisor for Electrolux. The currency conversion has been done through www.oanda.com as of September 8, 2014.

Electrolux AB (OM:ELUX B) cancelled the acquisition of GE Consumer Products from General Electric Company (NYSE:GE) on December 7, 2015.