Lubrizol Corporation, The, and The Lockhart Company, In the Matter of

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In the Matter of The Lubrizol Corporation, a corporation, and The Lockhart Company, a corporation.
FTC Matter/File Number:

071 0230

Docket Number:

C-4254

Enforcement Type:

Part 2 Consents

Case Summary

In February the Commission challenged Lubrizol Corporation’s consummated 2007 acquisition of the oxidate assets of The Lockhart Company which had the effect of substantially lessening competition in the already highly concentrated U.S. market for chemical rust inhibitors. These inhibitors are commonly used to prevent rusting during the manufacture of metal products such as automobiles and other heavy equipment. According to the Commission’s complaint the acquisition removed Lubrizol’s last substantial competitor in the relevant market. In addition, the Commission challenged a non-compete agreement included in the terms of the acquisition which prevented Lockhart from competing in the relevant market for 5 years as anticompetitive because it restrained the ability of new firms to enter the market. The Commission issued a consent order remedying its anticompetitive concerns requiring the divestiture of the oxidate assets in question to Additives International and the elimination of the non-compete agreement.