The Antitrust Week In Review
Here are some of the developments in antitrust news this past week that we found interesting and are following.
Dow Chemical settles price-fixing case after Justice Scalia’s death. Dow Chemical has agreed to pay $835 million to settle a decade-long lawsuit on price fixing, saying that the death of Justice Antonin Scalia lessened its chances of overturning the verdict at the Supreme Court. Dow, which is in the process of merging with Dupont, said on Friday that it decided to settle, without admitting any wrongdoing, citing “growing political uncertainties due to recent events within the Supreme Court.” Dow had filed a petition in the Supreme Court arguing that a 2013 class-action judgment that Dow had conspired to artificially inflate polyurethane prices violated class action law in multiple ways, particularly with respect to two rulings authored by Justice Scalia, one in 2011 favoring Wal-Mart Stores and another in 2013 favoring Comcast.
Honeywell Persists in Pursuit of United Technologies. Honeywell has made clear that it is not walking away from its proposed takeover of United Technologies, as a potential battle between the industrial giants became more public on Friday. In publishing an 11-page pitch to United Technologies on the merits of a merger, Honeywell sought to sway shareholders of its competitor. Later on Friday, United Technologies issued its latest rebuttal, again contending that a merger of the two—which would yield a nearly $160 billion conglomerate whose offerings run from building cooling systems to advanced jet engines—would never survive antitrust scrutiny.
EU halts Halliburton, Baker Hughes deal review, awaits details. European Union antitrust regulators have halted their scrutiny of U.S. oilfield services provider Halliburton’s proposed takeover of Baker Hughes because the companies failed to provide some details of the $35 billion deal. “This is a standard procedure on merger investigations which is activated if the notifying parties do not provide an important piece of information that the Commission has requested from them,” European Commission spokesman Ricardo Cardoso stated. The EU competition authority will set a new deadline for its decision when it has the required information from the companies. Antitrust regulators are worried that higher prices and less innovation may follow the proposed merger.
Tagged in: Antitrust Litigation, International Competition Issues, Price Fixing,