Assa, Spectrum Brands resolve US transaction 2023

Assa Abloy AB (ASSAb.ST), the world’s largest lock manufacturer, and Spectrum Brands Holdings (SPB.N) announced on Friday that they have reached an agreement with the U.S. Justice Department regarding Assa’s proposed $4.3 billion acquisition of Spectrum’s hardware and home improvement (HHI) division.

Last year, the Justice Department filed a lawsuit to block Assa Abloy’s proposed acquisition of the Spectrum Brands HHI division, which manufactures residential door hardware, on the grounds that the transaction could lead to price increases.

Assa Abloy produces Yale, August, and EMTEK, whereas Spectrum’s division produces Baldwin and Kwikset.

Under the terms of the settlement announced on Friday, Assa Abloy will divest its Emtek and Smart Residential businesses in North America to Fortune Brands (FBIN.N), the company said in a statement.

Fortune stated in a separate statement that it will proceed with the $800 million acquisition of Assa Abloy’s enterprises.

Assa Abloy agreed to sell the businesses to Fortune in December in an effort to resolve U.S. antitrust issues.

Both Assa and Spectrum anticipate the transaction will conclude by the end of June.