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Home>U.S. files antitrust lawsuit in Parker Hannifin-Clarcor acquisition

U.S. files antitrust lawsuit in Parker Hannifin-Clarcor acquisition

U.S. files antitrust lawsuit in Parker Hannifin-Clarcor acquisition

09/27/2017

By Brent Kendall

$4.3 billion deal created monopoly, Justice Dept. says

WASHINGTON -- The Justice Department on Tuesday filed an antitrust lawsuit challenging Parker Hannifin Corp.'s $4.3 billion acquisition of Clarcor Inc., alleging the deal created an unlawful monopoly.

The department, in a legal challenge filed in a Delaware federal court, argued that Parker Hannifin's acquisition, completed in February, had eliminated the company's only competitor in the market for products that filter fuel for airplanes. Aircraft fuel must be filtered to remove particles that could cause engine failure.

The case marks the first merger challenge brought by the Justice Department under the Trump administration. The lawsuit asks a federal judge to order Parker Hannifin (PH) to sell off either its own aviation fuel filtration business or Clarcor's to restore the previous competition in the market.

"Parker-Hannifin's acquisition of its only U.S. rival for these types of aviation fuel filtration products has effectively created a monopoly in these critical safety products, depriving their customers of the benefits of competition," said Andrew Finch, the acting head of the Justice Department's Antitrust Division.

An expanded version of this report appears on WSJ.com (https://www.wsj.com/articles/u-s-seeks-to-undo-parker-hannifins-acquisition-of-clarcor-on-antitrust-grounds-1506459613?mod=mktw).

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