Tag: Merger

Final order settles charges that Sorin Biomedica S.p.A.'s acquisition of COBE Cardiovascular, Inc. would eliminate competition in the United states market for research, development, manufacture and sale of heart-lung machines. The order permits the acquisition and requires the divestiture of COBE's heart-lung machine business to Baxter Healthcare Corporation

Rohm & Haas settled charges that its acquisition of Morton International, Inc. would lessen competition in North American for the production and sale of water-based floor care polymers used in the formulation of floor care products such as polishes. The consent order requires the divestiture of Morton's worldwide water-based floor care polymers business to GenCorp, Inc.

Consent order, resolving antitrust concerns relating to Zeneca's merger with Astra AB requires the divestiture of all assets relating to levobupivacaine, a long-acting local anesthetic. The assets were sold to Chiroscience Group plc, the developer of levobupivacaine.

Consent order requires Consumer Energy, a CMS subsidiary, to "loan" natural gas from its own system to shippers on third-party pipelines if the interconnection capacity with competing pipelines falls below historical levels settling charges that its acquisition of two natural gas pipelines, Panhandle Eastern Pipeline and Trunkline Pipeline, from Duke Energy Company, could reduce competition and increase consumer prices for natural gas and electricity in 54 counties in Michigan.

Medtronic agreed to divest Avecor Cardiovascular, Inc.'s non-occlusive arterial pump assets to settle antitrust concerns that the acquisition would lessen competition for the research, development, manufacture and sale of the pumps in the United States. The order requires Medtronic to provide assistance to the buyer of the Avecor Pump assets to enable the buyer to obtain FDA approval to manufacture and market the Avecor pumps an reservoirs.

The Commission accepted a proposed consent agreement with Quexco Incorporated, a company whose parent entity is Howard M. Meyers. The consent agreement related to the proposed acquisition by Quexco of Pacific Dunlop GNB Corporation, which is owned by Pacific Dunlop Limited. Both companies are involved in the secondary smelting of lead.  The parties subsequently decided to abandon the sale of GNB to Quexco, which eliminated the need for the relief contained in the consent agreement. The Commission voted to withdraw the consent agreement and close the investigation.

Under a settlement with the FTC, ABB agreed to divest the Analytical Division of Elsag Bailey Process Automation N.V. to Siemens Corporation to address FTC concerns that the acquisition of Elsag would substantially reduce competition in the market for process gas chromatographs and process mass spectrometers, analytical instruments used to measure the chemical composition of a gas or liquid used in petrochemical refining, pharmaceutical and chemical manufacturing, and pulp and paper processing.

Consent order in BP Amoco p.1.c. (created by the merger of British Petroleum Company, p.1.c. and Amoco Corporation) requires the divestiture of 134 gas stations in eight markets and nine Light petroleum products terminals settling charges that the merger would substantially reduce competition in certain wholesale gasoline markets.

Order requires divestiture of 10 supermarkets in Maryland and Pennsylvania to settle antitrust concerns stemming from Ahold's acquisition of Giant Food Inc.

To settle FTC charges, LaFarge, Corp. agreed to restructure its agreement to purchase certain assets of Holnam, Inc.  LaFarge and Holnam are two of five competitors in the portland cement market in the Puget Sound area. In February 1998, LaFarge and Holnam signed a letter of intent detailing an agreement under which LaFarge would buy Holnam's Seattle cement plant, cement distribution terminal in Vancouver, Washington, a rock quarry in Twin Rivers, Washington, and related assets. The FTC alleged that a provision of the sales agreement between LaFarge and Holnam would have imposed a penalty on LaFarge if it produced quantities of cement in excess of 85 percent of the Holnam plant's capacity. According to the FTC, this provision would encourage LaFarge to restrict the output of cement at the Seattle plant to avoid the production penalty and would prevent an increase in supply and a reduction in price for cement in the Puget Sound area. To restore competition, LaFarge and Holnam agreed to drop the production penalty clause.

The complaint, issued with the consent order, alleged that as a result of Merck's 1993 acquisition of Medco, the nation's largest benefits manager, Merck's drugs received favorable treatment through Medco's drug-list formulary made available to medical professionals who prescribe and dispense prescriptions to health plan beneficiaries. The consent order requires Medco, among other things, to maintain an "open formulary" to include drugs approved by an independent Pharmacy and Therapeutics Committee, staffed by physicians and pharmacologists who have no financial interest in Merck.

The consent order requires Shell Oil and its Tejas Energy, LLC, subsidiary, to divest parts of the ANR pipeline system in Oklahoma and Texas to settle charges that its acquisition of gas gathering assets of The Coastal Corporation would lead to anticompetitive increases in gas gathering rates and an overall reduction in gas drilling and production in the two states.

A final consent order settles allegations stemming from Medtronic's proposed acquisition of Physio-Control International Corporation's automatic external defibrillator business. According to the complaint, Medtronic, through its controlling interest in SurVivaLink Corporation, a direct competitor of Physio-Control, would control both companies as a result of the acquisition and thereby increase the likelihood of coordinated interaction which could result in increased prices and reduce innovation in the market. The consent order requires Medtronic to become a passive investor in SurVivaLink and reduce many of its present and future business contacts with the firm.

A consent order requires Albertson's to divest eight supermarkets in Montana and seven in Wyoming in order to settle FTC charges and maintain competitive grocery pricing in 11 communities following its acquisition of the Buttrey Food and Drug Store Company. Under the consent agreement, 13 of the supermarkets would be sold to Smith's Food and Drug Centers, Inc. and two supermarkets would be sold to Supervalu Holdings, Inc.

Federal-Mogul, one of the world's leading producers of thinwall bearings used in car, truck and heavy equipment engines, agreed to divest the thinwall bearings assets it acquired in its $2.4 billion takeover of T&N, plc. to settle FTC charges that the acquisition would likely substantially reduce competition in the worldwide market for thinwall bearings. According to the FTC, Federal-Mogul and T&N, headquartered in Manchester, England, have a combined market share in the United States of nearly 80 percent or more in each of the four markets identified in the complaint. The FTC consent order requiree Federal-Mogul to divest the thinwall bearings business of T&N, which includes the assets and plants that T&N uses to make thinwall bearings, as well as intellectual property that T&N uses to develop and design new bearings to meet the needs of engines that OEMs will develop in the future. To ensure that the divested thinwall bearings business would be in the same position that T&N had been in terms of research, the proposed order identifies individuals in T&N who worked on bearings research and development, and requires Federal-Mogul and T&N to assign those personnel to the businesses to be divested.