Approval for merger of privately owned carpet tufting machinery and equipment manufacturers

No. 394. Approval for merger of privately owned carpet tufting machinery and equipment manufacturers.

The Federal Trade Commission granted clearance to privately owned manufacturers of carpet tufting machinery and related equipment to merge their operations into one corporation whose voting stock will be offered for sale to the general public. The merging companies manufacture machinery and related equipment used by textile mill operators in the production of rugs, carpets, and other textiles. Some of the companies have a common ownership and are compebtors; another is not a competitor but manufactures machinery used by customers of the others. Some have about the same market shares in an industry of five manufacturers, about one-fifth of the market share of the domi. nant company, a substantial national conglomerate enterprise. One firm to be merged competes with ten others in its related industry. After having considered all available information the Commission concluded that the effect of the proposed merger is not likely to result in any lessening of competition nor the creation of a monopoly in the manufacturing of tufting machinery and equipment. The Commission is of the opinion that the beneficial competitive effects flowing from the amalgam of the privately owned enterprises into a publicly owned corporation will be to give greater competition to its giant rival. (File, Tuftco-processed by McMahill December 16, 1969)

;'o. 395. Retailer price reporting plan. The Commission issued an advisory opinion governing a proposed price checking service designed to publicize various current retail prices for grocery store products. Underlying data would be obtained in part by direct observation of posted prices and in part by referei1ce to information supplied by wholesalers and re-