March 29, 2006
Whirlpool Corp. has won approval of its $1.79 billion purchase of Maytag Corp. The Justice Department today agreed the merger would not significantly reduce competition. Canadian authorities approved the merger March 14.
"We are pleased with the decision ... that the global home-appliance industry is open and competitive," said Jeff M. Fettig, Whirlpools chairman and CEO. "This transaction will result in better products, quality and service, as well as cost efficiencies, which will enhance our ability to succeed in the competitive global home-appliance industry. Consumers will benefit from a combined Whirlpool and Maytag business."
The Justice Department said that although the combined company will be producing half of the dishwashers in the United States, an investigation by its Antitrust Division found that at least five other companies are well established in the U.S., thus making it unlikely the merged company would be able to drastically raise prices.
The combined entity is expected to control more than 70 percent of the clothes washers and dryers.
Whirlpool is the largest appliance manufacturer in the U.S. Maytag is number three, behind GE Consumer products.
Whirlpool had agreed not to complete the transaction until March 30, to give the Justice Department time to review the deal.
