Following a public comment period, the Federal Trade Commission has approved a final order settling charges that the merger of polyurethane foam producers FXI Holdings, Inc. and Innocor, Inc. would likely substantially lessen competition in three regional markets for the low-density conventional polyurethane foam that is used in home furnishings.
According to the complaint, FXI and Innocor are the only suppliers in the Pacific Northwest, two of three major suppliers in the Midwest states, and two of four major suppliers in Mississippi. Without a remedy, the acquisition would eliminate direct and substantial competition between FXI and Innocor, and would increase the likelihood of coordinated interaction among the remaining competitors in each regional market.
The final order requires the companies to divest FXI’s foam-pouring plant in Kent, Washington and Innocor’s foam-pouring plants in Elkhart, Indiana and Tupelo, Mississippi to Future Foam no later than 10 days after the close of the acquisition. The Commission vote to approve the final order was 5-0.
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