Tag: Merger

Dow agreed to settle allegations that its acquisition of Sentrachem Limited would have substantially lessened competition for the research and manufacture of chelating agents (chemicals used in cleaners, pulp and paper, water treatment, photography, agriculture, food and pharmaceuticals to neutralize and inactivate metal ions) by combining two of the three U.S. producers of the product. The terms of the consent order require Dow to divest Sentrachem's U.S. chelant business to Akzo Novel N.V.

An administrative complaint charged that the 1995 acquisition of Autolnfo, Inc. created a monopoly and raised prices in the automobile salvage yard information management industry. A final order requires the divestiture of specific integrated computer systems for auto parts inventory exchange.

Insilco agreed to divest two aluminum tube mills acquired in its acquisition of Helima-Helvetion International, Inc. to settle antitrust concerns that the acquisition would substantially reduce competition in the markets for welded-seam aluminum radiator and charged air cooler tubing in North America.

Two separate consent orders settle antitrust concerns stemming from acquisitions by the Loewen Group of certain funeral homes and cemeteries that substantially reduced competition in Brownsville and Harlingen/San Benito, Texas, and in Castlewood, Virgina.  The orders require Loewen to divest properties in the three local markets to restore competition.

The Commission authorized staff to file a motion for a preliminary injunction to block the proposed merger of the two largest hospitals in Grand Rapids, Michigan, Blodgen and Butterworth Hospital, on grounds that the merger would substantially reduce competition for acute-care inpatient hospital services in the area The complaint was filed January 23,1996 in the U.S. District Court for the Western District of Michigan (Southern Division). On September 26,1996, the court denied the Commission's request for an injunction. The Commission dismissed its administrative complaint after the U.S. Court of Appeals for the Sixth Circuit upheld the district court's decision.

Final order settles allegations that Jitney-Jungle's acquisition of Delchamps, Inc. would substantially reduce competition among supermarket stores in the areas of Gulfport- Biloxi, Hattiesburg and Vicksburg, Mississippi. The consent order requires the divestiture of 10 supermarkets to Supervalu, Inc.

Cadence agreed to settle charges that its acquisition of Cooper & Chyan Technology, Inc. would reduce competition for "routing" software used to automate the design of integrated circuits or microchips. According to the complaint, the merger would reduce Cadence's incentives to permit competing suppliers of routing tools to obtain access to its layout environments resulting in less innovation, higher prices, and reduced services. To ensure that independent software developers of commercial routing tools continue to compete with Cooper & Chyan's technology, the consent order requires Cadence to allow the developers to participate in Cadence's software interface programs.

Mediq abandoned its proposed acquisition of Universal Hospital Services after the Commission filed a complaint and motion for a preliminary injunction to block the merger of the nation's two largest firms engaged in the rental to hospitals of movable medical equipment, such as respiratory, infusion and monitoring devices. The complaint, filed in the U.S. District Court for the District of Columbia, alleged that the merger would create a monopoly for movable medical equipment rental in many major metropolitan areas across the nation.

CVS agreed to settle allegations that its acquisition of Revco would substantially reduce competition for the retail sale of pharmacy services to health insurance companies and other third-party payers in Virginia and in the Binghamton, New York metropolitan area. The consent order requires the divestiture of 114 Revco stores in Virginia and 6 pharmacy counters in Binghamton.

In March, 1998, CVS Corporation agreed to pay a $600,000 civil penalty to settle Federal Trade Commission charges that the company violated a 1997 consent order and asset maintenance agreement it signed with the agency to settle charges stemming from CVS's 1997 acquisition of Revco D.S., Inc.

The Commission issued a consent agreement settling charges that the acquisition of OrNda Healthcorp by Tenet Healthcare Corp. would substantially lessen competition for general acute care services in the San Luis Obispo, California area. According to the FTC, Tenet and OrNda were the second and third largest chains of general acute care hospitals in the country, and the two leading providers of acute care hospital services in San Luis Obispo County.  The consent order permits the acquisition but requires divestiture of Tenet's French Hospital Medical Center and related OrNda assets in San Luis Obispo County.

Final consent order preserves competition in the sale of commemorative class rings to graduating high school and college students. The order requires restructuring of the purchase agreement to exclude Gold Lance, Inc. from the proposed plans to acquire Class Rings, Inc. The new acquisition plan is limited to the class ring business of Town & Country Corporation and CJC Holdings, Inc.

Consent order settles charges that the acquisition of Metal Leve S.A. would result in Mahle becoming a monopolist in the research, development, manufacture and sale of articulated pistons used in heavy duty diesel engines and requires divestiture of Metal Leve's U.S. piston business within 10 days of the final consent order.

Consent order settles charges that the proposed acquisition of Solvay, S.A.'s animal health business would reduce competition in the market for the research, development, manufacture and sale of canine lyme vaccine, canine corona virus vaccine, and feline leukemia vaccine. The order requires divestiture of Solvay's U.S. and Canadian rights to the three types of vaccines to the Schering-Plough Corporation or another Commission-approved buyer.