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U.S. sues to stop Electrolux acquiring GE's appliance business


    WASHINGTON (Reuters) - The United States filed a lawsuit on Wednesday to stop Sweden's Electrolux AB , which owns the Frigidaire and Tappan brands, from buying General Electric Co's appliance business, the Justice Department said in a statement.

    It said the deal would hurt competition, and consumers, by combining two of the three top makers of stoves, cooktops and ovens. Whirlpool is the third.

    "ELECTROLUX (ELUXB.ES)s proposed acquisition of General Electric's appliance business would leave millions of Americans vulnerable to price increases for ranges, cooktops and wall ovens, products that serve an important role in family life," said Deputy Assistant Attorney General Leslie Overton of the Justice Department's Antitrust Division.

    "This lawsuit also seeks to prevent a duopoly in the sale of these major cooking appliances to builders and other commercial purchasers," she added.

    The department estimated that U.S. consumers spend $4 billion on appliances in 2014.

    The case at the U.S. District Court for the District of Columbia is United States v AB Electrolux and General Electric Co. It is No. 15-1039.

    (Reporting by Diane Bartz; Editing by Sandra Maler)