For Your Information: February 24, 1998
The Federal Trade Commission today announced the following action.
Consent agreements given final approval: Following a public comment period, the Commission has made final a consent agreement with the following entity. The Commission action makes the consent order binding on the respondent.
- The FTC’s consent order with The Dow Chemical Company, based in Midland, Michigan, allows it to complete its $500 million tender offer for Sentrachem Limited, a South African chemical company that operates in the United States through its wholly-owned subsidiary, Hampshire Chemical Company. According to the FTC’s complaint, Dow’s acquisition of Sentrachem would combine two of only three U.S. producers of chelating agents (also known as chelants). Chelants are used in cleaners, pulp and paper, water treatment, photography, agriculture, food and pharmaceuticals to neutralize and inactivate metal ions. The agency’s complaint stated that the merger may substantially lessen competition in the research, development, manufacture, and sale of chelants and would likely lead to unilateral prices increase for this product. The consent order requires Dow, simultaneously with its acquisition of Sentrachem, to divest Hampshire’s chelant business to Akzo, which imports small volumes of chelants into the United States. (See news release dated November 28, 1997; Docket No. 971 0105. The Commission vote to approve the consent order as final was 3-0, with Commissioner Mary L. Azcuenaga and Commissioner Mozelle W. Thompson not participating. Staff contact is Joseph Krauss, 202-326-2713.)
Applications for approval of transactions: The FTC has received applications for approval of a transaction from the following entities.
- The FTC has approved the application of Automatic Data Processing, Inc. (ADP) of Roseland, New Jersey, to divest its AutoInfo Assets to Cooperative Computing, Inc., an affiliate of Hicks, Muse, Tate & Furst, Inc. The divestiture is required under a consent order settling charges that ADP’s acquisition of AutoInfo assets resulted in a monopoly and substantially reduced competition in five markets in the salvage-yard parts trading information network industry. (See news releases dated October 24, 1997; December 5, 1997; Docket No. 9282. The Commission vote to approve the transaction was 4-0, with Commissioner Mary L. Azcuenaga not participating. Staff contact is Daniel Ducore, 202-326-2526.)
- The FTC has approved the application of Supervalu Holdings, Inc., based in Eden Prairie, Minnesota, to sell three supermarkets to R&M Foods, Inc. The three stores to be sold are: Delchamps Store #9, located at 601 Broadway Street, Hattiesburg, Mississippi; Delchamps Store #67, located at Oak Grove Plaza Shopping Center, 4600 West Hardy Street, Hattiesburg, Mississippi; and Delchamps Store #115, located at Delchamps Plaza, 3046-D Indiana Avenue, Vicksburg, Mississippi. Supervalu acquired 10 supermarkets from Jitney-Jungle Stores of America, Inc., based in Jackson Mississippi, in a divestiture required under a consent order settling charges that Jitney-Jungle’s $228 million acquisition of outstanding Delchamps, Inc. shares would violate antitrust laws by substantially reducing competition among supermarket operations in the Gulfport-Biloxi, Hattiesburg and Vicksburg areas of Mississippi, and in the Pensacola area of Florida. Supervalu is required to obtain the Commission’s approval, for three years, before selling any of the supermarkets it obtained from Jitney-Jungle; R&M was approved in the order, but Supervalu needed to obtain the Commission’s approval for the sales contracts. (See news releases dated September 12, 1997; January 30, 1998; Docket No. C-3784. The Commission vote to approve the transaction was 4-0, with Commissioner Mary L. Azcuenaga not participating. Staff contact is Daniel Ducore, 202-326-2526.)
Copies of the documents referenced above are available from the FTC’s web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-3128; TTY for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710
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