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GE is entitled to a breakup fee of $175 million from Electrolux, the very brief announcement said. The deal with the Swedish company had been worth a reported $3.3 billion.
The Appliances Business is performing well and GE will continue to run the business while it pursues a sale, the announcement said.
GE offered no reason for the decision in the three-sentence statement released Monday.
The Hartford Courant said U.S. regulators had opposed the deal over concerns about competition. The U.S. Department of Justice sued over the summer to stop the deal, saying that the sale would allow Electrolux to dominate sales of ovens and other cooking-related kitchen appliances, the Courant said.
In a statement Monday, Electrolux said it "regrets that GE has terminated the agreement while the court procedure is still pending."
GE has been in the news in recent months in Connecticut after Chairman Jeffrey Immelt threatened to move the company's headquarters out of Fairfield and to another state over what the company calls unfair corporate tax structures in Connecticut.
The state legislature is schedule to convene in a Special Session on Tuesday called by Gov. Dannel Malloy.
Items on the agenda include changes in the corporation tax net operating loss provisions and unitary combined reporting. Both changes are part of an effort by the state to keep persuade GE to keep its headquarters in Connecticut.
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