DoJ sues to stop Assa Abloy acquisition of Spectrum Brands Home & Hardware division
By Ken Showers, Managing Editor
Updated 1:19 PM CDT, Fri September 23, 2022
WASHINGTON, D.C. – The U.S. Department of Justice (DoJ) has filed an antitrust lawsuit to block the proposed acquisition of Spectrum Brands Holdings Hardware and Home Improvement division by its rival, Swedish conglomerate Assa Abloy.
Assa Abloy and Spectrum make two out of three of the largest players in the residential door hardware community, an industry sector worth roughly $2.4 billion. In their complaint the DoJ alleged that the acquisition would eliminate important competition between the companies and would drive up prices while lowering the quality of goods and services for consumers for at least two different products, smart locks and premium mechanical door hardware.
“Millions of Americans rely on these companies’ door hardware products every day to meet their most basic privacy and security needs,” Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division said. “Competition between these two companies, which are two of the three largest companies in an already concentrated industry, has benefited American consumers in the form of lower prices and better quality. That important competition would be extinguished if this merger were allowed to proceed to the detriment of Americans.”
Assa Abloy have protested in response to the suit filed by the DoJ saying in a release that, “ASSA ABLOY and Spectrum Brands strongly disagree with the Department of Justice’s characterization of the proposed transaction, and will vigorously contest in court this effort by the DOJ to oppose the transaction.”
Assa Abloy President and CEO Nico Delvaux goes on to say, “We believe strongly in the acquisition of HHI as we together will increase investments in the residential segments and strengthen our combined product offering for the benefit of consumers.”
The statement confirmed that the companies agreed to extend their agreement for ASSA ABLOY to acquire HHI to June 30, 2023.
If the merger were to go through the DoJ says that Assa Abloy would have a “near monopoly” on premium mechanical door hardware and more than a 50 percent share in smart locks.
You can read the full statement by the DoJ online at www.justice.gov and Assa Abloy’s response at www.assaabloy.com.
antitrust, Assa Abloy, Jonathan Kanter, Nico Delvaux, smart locks, Spectrum Brand Holdings, U.S. Department of Justice (DOJ)
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