Manufacturer of household appliances and automotive products GUD Holdings Ltd (ASX:GUD) has decided to let its bid for fellow home appliance company Breville Group Ltd (ASX:BRG) lapse after opposition from the Australian Competition and Consumer Commission.
In December the ACCC said it would oppose the proposed acquisition as it could result in higher prices for consumers of small appliances.
The company says it is both surprised and disappointed at the ACCC’s decision, saying that while it strongly disagrees with the decision it does not intend to challenge that decision due to significant cost and delay involved.
Managing Director Ian Campbell says management will continue to focus on improving returns from its existing businesses and remains strongly positioned to pursue additional growth opportunities as they arise.
GUD Holdings posted a profit of $34.8 million for the year to June 30, 2009.