Consumer Law Library

Advisory opinion letter to Mr. SaTreE

Topics: Clayton Act §7: mergers and acquisitions

Opening text: TYPICAL ORDER FOR 1 YEAR Points 10 Cameras at 15 points each_.__----------------------------------- ~ 150: 10 Cases at 3 points each__.__-------------------------------------- 30: 10 Pair 7 x 28 RP binoculars at 10 points

78 F.T.C. 1636 · date not parsed ·

source volume section (78 F.T.C. 1636)

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.

TYPICAL ORDER FOR 1 YEAR Points 10 Cameras at 15 points each_.__----------------------------------- ~ 150: 10 Cases at 3 points each__.__-------------------------------------- 30: 10 Pair 7 x 28 RP binoculars at 10 points each_..__._.--_------------- 100: 10 Pair 8 x 32 RP binoculars at 10 points each._.-._------------------ 100: 10 Pair 8 x 56 RP binoculars at 10 points each______--___-_----------- 100 10 Pair 7 x 35 Macrofocus wide angle binoculars at 10 points each. _.___- 10010 Pair 8 x 40 Macrofocus wide angle binoculars at 10 points each__.___- ~ 100 10 Pair 9 x 35 Macrofocus wide angle binoculars at 10 points each____-_- 100 10 Pair 10 x 40 Macrofocus wide angle binoculars at 10 points each__-_-_- 100 10 Stereo devices at 10 points each____------------------------------ 100 10 Projection tables at 5 points.____--------------------------------- 50 36 Pair assorted spectacles at’ 1 point each.__.-..-.---_------------~-- 36 6 Illuminated viewers at 2 points each__...--.----------------------- 12 6 Hand print viewers at 2 points each...-_-_--.---------------------- 12 20 Assorted adapters at 1 point each___.-.-----.--------------------- 20 6 Slide projectors at 15 points-each____.---_------------------------- 90° 3 S/A adapters at 3 points each____:_------------------------------- 9 10 25mm wide angle lenses at 10 points each____.___--_-_------------- 100 36 28/35/135/200mm lenses at 1 point each_.___-_------------------ a 36 10 100mm lenses at 2 points each___-_-.----------------------------- 20 10 90/190 zoom lenses at 2 points each____-----_---------------------- 20: 6 70-230 zoom lenses assorted at 20 points each____._---_---_--------- 120. 6 85-205 zoom lenses assorted at 20 points each__._-------------------- 120 12 Foot switches at 1 point each_.__.__-------------------------------- 12 24 Assorted easels at 2 points each___._-.-_--------------------------- 43 24 Triclamps at 6 points each_____-----------------------------~----- 144 24 Pistol grip (FA—002) at 4 points each_______---_------------------- 9624 Pistol grip (FA-008) at 1 point each___-_.----.------------------- 24 12 2-way bounce head at 1 point each..__---------------------------- 12 24 3-section step-on tripod at 2 points each__._-___---.--------------- 48 24 4-section step-on tripod at 4 points each____..-.-----------.--~---- 96. 3 Spotting scopes at 10 points each___..----.------------------------ 30: 96 Lens pouches at 5 points per doz____-..--------------------------- 40: 6 Cases IA-005L at 6 points each.____-.----------------------+------ 36. 6 Cases IA-005U at 5 points each____-_----------------------------- 30 6 Cases [A-055 at 5 points each__.____----------------=-------------- 30: 6 Cases IA-006 at 3 points each._._-.--------.---------------------- 18 6 Cases IA-066 at 5 points each____.__.-_-.------------------------- 30: 24. Shoulder bags at 1 point each____-------------------------------- 24 24 IB-001/IB—002 bags at 5 points each___.--_----------------------- 120: Total_._....--..-.-_--------------------------------------- 2, 463 NotTe.—Plus carded goods;

Proposed Acquisition by 2 Cement and Aggregate Producer of Certain Assets of a Producer and Seller of Concrete and Block, and Dry Building Materials. (File No. 713 7008)

Opinion Letter
Marcu 12, 1971
Dear Mr. SaTreE:

This is with further reference to your request for an advisory opinion approving the proposed purchase of certain assets of Burnup by Maule. a .

Tt is the Commission’s understanding that Maule proposes to acquire for $384,000 from Burnup all of the physical assets, excepting transit mix trucks, located at Melbourne, City Point and Micco, Florida, owned by Burnup for use in the production and sale of ready-mix concrete and concrete block and for the purchase and sale of dry building materials. Maule currently supplies Burnup with aggregate and is a potential supplier of cement to Burnup from Maule’s Miami mill.

“In pertinent part, the Commission’s “Enforcement Policy with Respect to Vertical Mergers in the Cement Industry,” issued January 8, 1967, provides that “. . - the Commission intends to investigate expeditiously every future acquisition by a cement producer of any. substantial ready-mix concrete firm in any market to which such acquiring producer is an actual or potential supplier” (I, p. 9)- The Policy Statement provides further that acquisition of any ready-mix concrete company, or other cement consumer, which regularly purchases 50,000 barrels of cement or more annually, will be considered a substantial acquisition (II, p. 9). The available information indicates that in each of the two years prior to notification to the Commission of the proposed acquisition, Burnup purchased more than 50,000 barrels of cement.

The information you have provided is not sufficient for the Commission to make a determination as to whether the proposed acquisition is subject to the jurisdiction of the Commission. However, if the acquisition is consummated an investigation to determine this and other questions will be initiated, since the information does indicate that the type and size of the acquisition would fall within the Commission’s Enforcement Policy with Respect to Vertical Mergers in this industry.

By direction of the Commission.

Supplemental Letter of Request
JANvARY 25, 1971
Dear Mr. Durrusne:

Relative to your requests for information as set forth in your letter of December 28, 1970, the following is in answer to Item No. 1: Maule Industries, Inc., was incorporated February 21, 1946, in the State of Florida.

Maule Industries operates in the counties of Dade, Broward, Palm Beach, Martin, St. Lucie, Brevard and Volusia. Within these counties, Maule operates ready-mix concrete plants, concrete block plants, concrete pipe plants, a small operation at Fort Pierce, Florida, buying and reselling building materials, aggregate plants in Dade and Broward counties, prestress and precast concrete components in Dade county, asphalt plants in Dade County and as of April of 1970, we had completed a cement mill and are producing cement for distribution to our concrete products and ready-mix plants with some sales to other consumers producing in Southeast Florida only. The purchase of supplies is primarily from Florida suppliers with the exception of heavy equipment which comes through Florida distributors but originates in other parts of the United States; an example of this would be cranes, bulldozers, ready-mix trucks and other heavy pieces of construction equipment.

As to Burnup & Sims, Inc., they. advise us that they were incorporated in May 1941, in the State of Florida. This company is mainly in construction which is, in the most part, doing underground work for utility companies in laying cables and other communication transmissions. They have now branched into some ownership and construction for others of CATV installations. Their concrete operations are confined to the Brevard County area of Florida where they operate one main plant, one satellite plant and one portable plant. They produce in Brevard County ready-mix concrete, concrete block and also operate a small building materials yard. Their cement is purchased from General Portland Cement Company in Florida. They do not operate in the concrete industry in any other state. However, they do have a small concrete plant on the island of Barbados which they originally set up to satisfy their needs for readymix concrete and thereafter continued it as a concrete operation. In conclusion, our operations in the concrete products industry and in the cement industry relative to Maule and to Burnup & Sims are confined solely to the State of Florida.