Shares of Spectrum Brands (NYSE:SPB) are down over 15% halfway through today’s trading session. This drop can be attributed to the U.S. Justice Department’s decision of trying to block Assa Abloy’s (OTC:ASAZY) acquisition of Spectrum’s door hardware unit.
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However, Spectrum Brands disagrees with the DOJ’s position. Despite the acquisition causing two of the top three leading companies in the industry to merge, SPB argues that the industry remains highly competitive as barriers to entry are low for new firms. The company remains confident that the deal will eventually be completed.
Investors have seen shares of the company fall over 41% on a year-to-date basis, significantly underperforming the major indices.
