Spectrum Brands stock dives after DOJ sues to block HHI sale to Assa Abloy

Shares of Spectrum Brands Holdings Inc. SPB, -15.27% dove 8.6% in morning trading Thursday toward a two-year low, after the U.S. Department of Justice sued to block the branded consumer products company’s sale of its hardware and home improvement (HHI) business to Sweden-based Assa Abloy AB ASAZY, +1.18% ASSA.B, +1.33% amid competition concerns. Spectrum responded by saying the DOJ’s opposition of the sale was “baseless,” and “ignores the realities” of the residential security marketplace, which has “many capable and vigorous competitors” and easy entry by new firms. The company said it was committed to completing the sale and is “confident” it will prevail in litigation. Spectrum said that while it disagreed with the DOJ’s concerns, it and Assa Abloy made “numerous” proposals to address the concerns that were rejected. “Their choice to pursue litigation places political ideology above the interests of American consumers and workers,” said Spectrum Chief Executive David Maura. “We are confident that the court will agree with us and will allow us to close the transaction.” Spectrum had announced in September 2021 a deal to sell the HHI business for $4.3 billion. Spectrum’s stock has tumbled 47.1% year to date, while Assa Abloy’s U.S.-listed shares have shed 32.2% and the S&P 500 SPX, -0.26% has lost 17.9%.