Premel'ger clearance denied: Adverse competitive effects probable
73 F.T.C. 1297 · June 10, 1965 · Digest No. 171
source volume section (73 F.T.C. 1297)
Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.
No. 171. Premel'ger clearance denied: Adverse competitive effects probable.
The Commission issued an advisory opinion on June 10 , 1965, in which a request for premerger c.learance from liability under Section 7 amended Clayton Act, was denied because of the existence of probable adverse competitive effects.
A manufacturer/retailer of consumer leather goods requested clearance for its proposed acquisition of a major regional reta.iler of products produced by the manufacturer. The horizontal and vertical implications of this proposed merger were similar to those which were v. B7'orwn Shoe 370declared unla,wful in the case of United States S. 294 (1962). However, the Inarket shares \\ere smaller and probable adverse competitive ejl'ects somewhat less than were present in the B To'wn Shoe case.
The Conllnission advised there existed a substantial probability that the proposed acquisition would be a violation of the Clayton and Federal Trade Commission Acts. The application for premerger c.learance was denied. Thereafter, the aequisition was consmnmated. A complaint issued and a consent settlement effected whereby the acquiring company agre.ed to nlake no further acquisitions of retailers or manufacturers of the pToduct involved for a peTiod of several years without prior Commission approval. (File No. 653 7051 , released Feb. 13 , 1968.