Spectrum Brands Shares Fall 15% After DOJ Sues to Block Deal with Assa Abloy

By Kathryn Hardison

Shares of Spectrum Brands Holdings Inc. dropped on Thursday after the Justice Department filed an antitrust lawsuit to block Assa Abloy AB's plans to buy the company's hardware and home-improvement segment for $4.3 billion in cash.

At 1:10 p.m. EST, shares slid 15% to $49.93. Thursday's intraday low was $49.59, the lowest level since July 28, 2020, according to FactSet.

The department alleges that the deal would eliminate head-to-head competition between Assa Abloy and Spectrum, "risking higher prices, lower quality, reduced innovation and poorer service in the sale of at least two types of residential door hardware: premium mechanical door hardware and smart locks."

Spectrum Brands said in a statement that it would "vigorously oppose" the suit and that the deal with Assa Abloy would benefit consumers by ultimately delivering better innovation and product choice.

Shares of Spectrum Brands are down 51% for the year.

Write to Kathryn Hardison at [e-mail]

(END) Dow Jones Newswires

09-15-22 1335ET