Pl'emel'gel' ch:al'ance denied: Lacl( of collupetitive information
73 F.T.C. 1298 · Oct. 29, 1965 · Digest No. 173
source volume section (73 F.T.C. 1298)
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. 173. Pl'emel'gel' ch:al'ance denied: Lacl( of collupetitive information.
The Commission issued an advisory opinion on October 29, 1965, in w hic.h a request for premerger clearance. from liability under Section 7 mnended Clayton Act~ was denied for lack of competitive information concerning competition in the line of commerce involved. A. leading manufacturer of dispensing machines sought apprm"a.l of its proposed purchase or a smaller, family held manufacturer of dispensing mac.hines which were complementary to the product line of the acquiring company.
The Commission declined to rendm' an opinion becau:~e. of (1) the pa.ucity of competitive information concerning competition in the line of commerce with which the acquired companis machine Iyas identified, and (2) the. short time period available between the date of the request and the closing date agreed upon between the parties. This shalt time precluded a. more complete investigation and anal~Tsis. (File No. 663 7014, released Feb. 13 , 19G8.
No. 17 L Pl'emerger !Clearance denied: Vertical merger would raise questions.
The Commission issued an advisory opillion September 8, 1966, in which a request for premerger clearance f1'0111 liability under Sec.- ADVISORY OPISION DIGEST 1299 tion 7, amended Clayton Act, was denied because the competitive implications of the acquisition would raise economic questions resolvable only by investigation.
A leading construction material producer applied for clearance its proposed acquisition of a diversified company having a large share of a regional market in the sale of raw materials such as sand, gravel and stone, which were complementary to its principal product line. The requesting party offered to dispose of certain producing plants now opel' ateel by the company, and to continue approprinte leases of other such plants as the company owned.
The Commission advised the requesting party that the competitive implications of the integration of construction material distributors with sources or raw materials IVere such that an investigation to assess the economic effects of the acquisition, if it was consummated would be necessary. (File No. 673 7004, released Feb. 13 , 1968.