Latham Offers Three Lessons from DOJ Lawsuit to Unwind Merger

On September 26, 2017, the US Department of Justice’s Antitrust Division (DOJ) sued to unwind Parker-Hannifin Corporation’s (Parker’s) consummated acquisition of CLARCOR Inc. (CLARCOR) on the ground the transaction created a monopoly in the US market for aviation fuel filtration systems and filter elements, in violation of Section 7 of the Clayton Act. DOJ’s complaint demands divestitures sufficient to replace CLARCOR’s pre-acquisition position in the marketplace, among other relief.[i]

Notably, Parker’s US$4.3 billion acquisition of CLARCOR had already cleared US antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act). According to company filings and press reports, Parker announced … Read more