Tag: Merger

Metso settled charges that if its acquisition of Svedala Industries AB were allowed to proceed as planned, competition would be lessened in four rock processing equipment markets: primary gyratory crushers; jaw crushers; cone crushers; and grinding mills. The firms agreed to divest Metso's worldwide primary gyratory crusher and grinding mill businesses and Svedala's worldwide jaw crusher and cone crusher businesses. The three crusher businesses would be purchased by Sandvik AB, a Swedish corporation; the grinding mill business would be purchased by Outokumpu of Finland. Metso and Svedala are the two largest suppliers of rock processing equipment in the world.

The consent order permitted the merger of Establissements Delhaize Freres et Cie “Le Lion” S.A. and Delhaize America, Inc. with Hannaford Bros. Co. and required the sale of 37 Hannaford supermarkets and one Hannaford site to three different buyers.

Siemens settled charges relating to its proposed $9 billion acquisition of Atecs Mannesmann AG, a subsidiary of Vodafone. The consent order requires, among other things, the divestiture of Vodafone's Mannesmann Dematic Postal Automation business to Northrop Grumman Corporation. Siemens and Vodafone, through its Dematic subsidiary, are the two leading suppliers of postal automation systems in the world.

A final order permitted the $4 billion merger of MCN, a natural gas utility servicing communities in Michigan, and DTE, a public utility engaged in the generation and sale of electricity in Detroit and southeastern Michigan. The consent order resolves Commission concerns that the merger would lessen competition in the local distribution of electricity and in the local distribution of natural gas in the city of Detroit and in the Michigan counties of Macomb, Monroe, Oakland, Washtenaw and Wayne. MCN is the parent of Michigan Consolidated Gas Company and DTE is the parent holding company of The Detroit Edison Company.

The FTC sought a preliminary injunction to block H.J. Heinz Company's (Heinz) proposed $185 million acquisition of Milnot Holding Company, owner of Beech-Nut Nutrition Corporation (Beech-Nut), citing concerns that the transaction would reduce the number of competitors in the baby food market from three to two, creating a duopoly. Heinz and Beech-Nut are the nation's second- and third-largest producers of prepared baby food.  The district court denied the motion, but the U.S. District Court of Appeals for the District of Columbia reversed the federal district court decision and granted the Commission’s request for entry of a preliminary injunction.  Soon after, the parties abandoned the transaction.

The consent order permits the acquisition of Hughes Space and Communications, a subsidiary of General Motors Corporation, but prohibits Boeing from providing systems engineering and technical assistance (SETA) to the U.S. Department of Defense for a specific classified program. According to the complaint, Boeing is the sole supplier of SETA programs and Hughes is one of two competing contractors.

The consent order permits the merger of Philip Monis and Nabisco Holdings Corporation while settling charges that the merger of the two food companies would reduce competition in the already highly-concentrated food product markets. Under terms of the order, the parties are required to divest Nabisco's dry- mix gelatin, dry-mix pudding, no-bake dessert, and baking powder assets to The Jet Sea Company and Nabisco's intense mints assets to Hershey Foods Corporation.

A consent order permitted Winn- Dixie's acquisition of 68 supermarkets and other assets from bankrupt Jitney-Jungle Stores of America, Inc. The order prohibits Winn-Dixie, among other things, from acquiring any interest in four Jitney-Jungle supermarkets located in the following areas: Niceville, Gulf Breeze, and Destin, Florida; as well as the Gulfport-Biloxi area of Mississippi.  in addition, for 10 years, Winn-Dixie is prohibited from entering into or enforcing any agreement that restricts the ability of any person to operate a supermarket in the location of a former Winn-Dixie store.

Final consent order permitted the acquisition of Mynd Corporation and required the divestiture of Mynd's Claims Outcome Advisor System to Insurance Services Office, Inc. Claims assessment systems are used by insurance companies to evaluate appropriate payments for claims of bodily injury and to evaluate return-to-work plans in workers compensation matters.

Final order permitted Valspar's acquisition of Lilly Industries, Inc., but requires Valspar to divest its mirror coatings business to Spraylet Corporation. Mirror coatings are applied to the back of a piece of glass in order to produce a mirror.

Under terms of a final consent order settling charges stemming from the merger of SmithKline and Glaxo Wellcome plc, the parties agreed to divest pharmaceutical products in six markets: antiemetics; the antibiotic, ceftazidime; oral and intravenous antiviral drugs for the treatment of herpes; topical antiviral drugs for the treatment of genital herpes; and over-the-counter H-2 blocker acid relief products.

The Commission authorized staff to seek a preliminary injunction to block the proposed acquisition of National Tobacco Company, L.P. on grounds that the $165 million acquisition would lessen competition in the market for loose leaf chewing tobacco and that Swedish Match’s market share would increase to 60 percent. On December 14, 2000, the U.S. District Court for the District of Columbia issued a 42-page opinion granting the Commission’s motion for the injunction. On December 22, 2000, the parties abandoned the transaction.

The consent order permits the merger of Novartis and AstraZeneca PLC into a new Swiss company, Syngenta AG. The order requires Novartis to divest its worldwide foliar fungicide business (based on the strobilurin chemical class) to Bayer Ag; and requires AstraZeneca to divest its worldwide com herbicide business (based on the active ingredient acetochlor) to Dow AgroSciences LLC.