General Electric has terminated the sale of its appliance business to Electrolux.
The deal had been in jeopardy since June, when the department sued to block the purchase.
At the time, GE and Electrolux said they would fight the suit in court.
The development means the more than 6,000 people who work at Louisville’s appliance park will now continue to work for GE.
Electrolux released a statement Monday morning. In it, the company states it made extensive efforts to obtain regulatory approvals and regrets that GE has terminated the agreement while the court procedure is still pending.
“Although we are disappointed that the acquisition will not be completed, Electrolux is confident that the group has strong capabilities to continue to grow and develop its position as a global appliances manufacturer,” said Electrolux president and CEO Keith McLoughlin.
GE is entitled to a break-up fee of $175 million from Electrolux.
According to GE, the appliances business is performing well and GE will continue to run the business while it pursues a sale.
IL will have more on this story later today.