Interpretation of request for pre merger clearance: Declining industry

No. 175, Interpretation of request for pre merger clearance: Declining industry.

The Commission issued an opinion October 8, 1965, in connection with a request for advice by two respondents as to whether a proposed merger, if consu111mated, IVoulcl be in violation of an outstanding order prohibiting them from, among other matters, uniting facilities so as to eliminate competition.

One respondent, a small company in the coin operatec1machine business, desiring to be acquired by the other, a larger COl!11)imy in the same industry, applied for clearance of the proposed acquisition under Commission established procedures. It was reported that the smaller respondent was in financial difl1culties to the point where it was approaching failure. Further reasons advanced to support the proposed lnergel' IVere that demand for the product \ins on the decline, the industry easy to enter, and reasonable efforts to locate another purchaser had been unsuccessful. OIi the basis of available information, the Commission advised that if the smaller respondent sold its business to any company, the Commission did not intend to initiate proceedings with regard to such sale. (File :0;0. D-612cl, released Feb. 13, 1968. ) (Opinion issued under authority of Section 3.61 (c) of the Commission s Rules of Practice (1967).