The Bendix Corporation

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IN THE MATTER OF THE BENDIX CORPORATION SET ASIDE ORDER 11\ REGARD TO ALLEGED VIOLA TlOK OF THE FEDERAL TRADE COMMISSIO AND CLAYTON ACTS Docket 3042. Consent Order, Sept. 19RO-Set Asidf' Order, Feb. 19R6 The Federal Trade Commjssiof, has modified 8 1980 consent order with The Bendix Corporation (96 F, T.e. a52) by setting aside portions of the order that required prior approval by the FTC before the respondent could acquire any interest in companies that manufacture or sell certain machine-tool products. The Commission ruled that the provision was no longer necessary since Bendix, ana its parent company, Allied Corp. , no longer manufacwre 0, set any kind of machine-too) product refr rred to in the order ORDER REOPE G AND SETTIKG ASIDE PORTIONS OF ORDER 1SSCBD SEPTEMBER 23, 1980 On October 16, 1985, Allied Corporation (nAllied") filed a Request pursuant to Section 5(b) of the Federal Trade Commission Act, 15. U.5.G 45(b) and Section 2.51 of the Commission s Rules of Practice. The Request asked the Commission to reopen the consent order issued on September 23, 1980 ("the order ) r96 F. G 352J and terminate Paragraphs VIII and X thereof Allied became subject to the order when it acquired The Bendix Corporation ("Bendix ) on January 31 1983.

Paragraph VIII. the only substantive provision of" the order which still has prospective application, prohibits Bendix, flor a ten year peri- , from acquiring without prior Commission approval, any company engaged in the manufacture or sale in the United States of rotating toolholders, external cylindrical grinding machines, or numerically controlled machine tools. Paragraph VIII exempts from this requirements any company engaged in the manufacture of numerically controlled machine tools whose assets devoted to such manufacture or \vhost; sales thereof during the year preceding such acquisition were not in excess of 810 million. Paragraph X of the order requires respondent to report its compliance with Paragraph VII annually for a ten-year period After reviewing Allied's Request, the Commission has concluded that changed conditions of fact and the public interest warrant reopening the proceeding and setting aside Paragraphs VIII and X of the order. Allied has d,vested or sold off all of the product lines that gave rise to the order and the concerns that led to the order are no BE:\DIX CORP Set Aside Order longer applicable to Allied's current operations. The commission believes that under the circumstances presented here the costs, both the Allied and to the Commission, associated with continuing the moratorium provisions, are suffcient to outweigh the need for the order and the general presumption in favor of the repose and finality of Commission orders.

Accordingly, it is ordered that this matter be, and it hereby is reopened and that Paragraphs VIn and X of the Commission s order issued on September 23, 1980, shall terminate as of the effective date of this order.

Commissioner Bailey was recused.

Complaint 107 F.