Compliance interpretation of request for premel'ger clearance: Imminent insolvency

No. 187. Compliance interpretation of request for premel'ger clearance: Imminent insolvency.

The Commission issued an opinion September 25, 1964, in connection with a request for adviee as to "hether a proposed merger, if consummated, would be in violation of an outstanding Commission order prohibiting the purchasing company from making certain aequisitions.

A large integrated company manufacturing commercial products applied for clearance to acquire a smaller company engaged in operations in the same product line in the ,Vestern States. The larger company "as, and is now, subject to a Commission order prohibiting certain acquisitions for a designated period of time without prior Commission approval.

Both manufacturers were in direct competition in the geographic.al trading area. However, each held a relatively small share of the market involved. It \Vas representeel that the smaIl concern had exhausted all other possibilities of selling to another purchaser, save to one or more of the other integrated manufacturers in the industry. The seller, who was suffering personal harelshi ps because of illness in his family, had to leave the business and the area \Vhic.h is served. On the basis of the information and data supplied, the Col1llnission cleared the l'equest for cleara.nee of the proposed r. cql1isition. (File No. 751 , released Feb. 13 , 1968. ) (Opinion issued under authority of Section 3.61 (c) of the Commission s Rules of Practice (i967).

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1306 FEDERAL TRADE CO::\Il\fISSIOX DECISIONS