DOJ CHALLENGES CLOSED $4.3B PARKER HANNIFIN DEAL
October 11, 2017
The Department of Justice has filed suit against Parker Hannifin’s $4.3 billion acquisition of Clarcor on the grounds that the consummated merger combines the only two domestic companies providing aviation fuel filtration systems for the military and airlines. The merging of the two companies eliminates head to head competition for systems and parts and would lead to higher prices. DOT states that this deal created an illegal monopoly and would yield higher prices, less innovation, and less favorable terms for companies and the U.S. military. The suit asks for temporary relief to keep Clarcor’s aviation fuel filtration business from disappearing while the case proceeds.
While suits seeking to undo a consummated merger are rare, DOJ notes that Hannifin failed to produce documents and data after requests were sent by the agency. Parker Hannifin stated that DOJ did not issue a second request for information after the waiting period for the transaction ended in January.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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