Canada's Competition Bureau Clears Whirlpool, Maytag Merger
Mar 14, 2006
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The proposed merger between appliance makers Whirlpool Corporation and Maytag Corporation has been cleared by the Competition Bureau of Canada (Bureau).
The Bureau, an independent law enforcement agency, concluded that it has no grounds upon which to challenge the proposed merger under Canada's Competition Act.
In reaching its conclusion, the Bureau determined the proposed merger will not give rise to a substantial lessening or prevention of competition in relation to any relevant market in Canada. The Bureau said its decision follows a thorough review, including extensive industry contacts.
"We are pleased with the decision of the Competition Bureau. We believe the Bureau's decision recognizes that the global home-appliance industry is open and competitive," said Jeff M. Fettig, Whirlpool's 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."
Ralph F. Hake, Maytag's chairman and CEO said, "Maytag is pleased with the decision by the Canadian Competition Bureau. In our view, this decision reinforces the fact that this merger is pro-competitive and is certainly in the best interest of our company, our brands and our shareholders."
On Feb. 13, 2006, Whirlpool and Maytag agreed with the Antitrust Division of the U.S. Department of Justice to a limited extension of time to complete the review of the proposed acquisition of Maytag by Whirlpool. The companies have agreed not to close the transaction before March 30, 2006, without the Division's concurrence. Whirlpool and Maytag said they are working closely with the Division and continue to cooperate fully with its investigation and respond promptly to its inquiries.
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