The Justice Department announced the settlement of its antitrust challenge to Assa Abloy’s planned acquisition of a US rival. The $4.3 billion deal is now on track for completion.
Assa Abloy, a company that sells locks under different brand names, revealed its intention to acquire Spectrum Brands’ Hardware and Home Improvement segment in Middleton, Wisconsin in September 2021. However, the Justice Department filed a lawsuit in September 2022 to prevent the acquisition, citing concerns about a reduction in competition in the residential door hardware sector and potential price increases.
Read more: Assa Abloy To Divest To Resolve DOJ Antitrust Dispute
“The settlement with DOJ is an important milestone towards closing of the HHI acquisition, which will empower us to increase investments in the residential segments, realize the synergies of MUSD 100 and strengthen our product offering for the benefit of consumers,” Nico Delvaux, president and CEO of ASSA ABLOY, said in a release.
The DoJ stated that the proposed settlement featured additional terms including, “… expanding Fortune’s intellectual property and commercialization rights in smart locks, inclusion of additional residential mechanical lock assets, the appointment of a monitoring trustee, a penalty provision for delayed transfer of a manufacturing facility, and the ability, under certain circumstances, for the Department to seek additional relief later if the divestiture fails to maintain the intensity of competition that existed before the merger for smart locks used for residential and multifamily buildings.”
