Consumer goods giant Newell Rubbermaid is set to combine with its close competitor Jarden in a cash, debt and equity deal that will see the Atlanta-based enterprise acquire many more “power brands” including Breville and Sunbeam. The deal, according to Newell Rubbermaid, will create a $16bn consumer goods company and make it easier for the two, under the new name of Newell Brands, to make continued price cuts and satisfy retailers.

Not all news was positive however, and shares in Newell Rubbermaid fell seven percent on hearing of the news

Wal-Mart for example has asked its suppliers to reduce prices and the Newell Rubbermaid/Jarden merger should go some way towards that end by making $500m in savings for the first four years.

“The scale of our combined businesses in key categories, channels and geographies creates a much broader canvas on which to leverage our advantaged set of brand development and commercial capabilities for accelerated growth and margin expansion,” said Newell Rubbermaid’s CEO and President Michael Polk in a statement. Jarden’s CEO James Lillie added, “This combination is focused on driving shareholder value and accelerating the growth and profitability of both businesses.”

Not all news was positive, however, and shares in Newell Rubbermaid fell seven percent after the news – given that the deal was to be financed by $5bn in debt and 221 million new shares. Upon its closing, expected in the second quarter of 2016, Polk will assume the chief executive role and the Newell Brands board will be expanded to include three representatives of the Jarden board.

The deal, which needs shareholder approval from both companies, falls in step with a series of acquisitions conducted recently by Newell Rubbermaid. According to the company, the deal will add immediately to earnings.