WASHINGTON (Legal Newsline) - The U.S. Department of Justice announced Sept. 26 it has filed a civil antitrust lawsuit against Parker-Hannifin Corporation, alleging its $4.3 billion acquisition of Clarcor Inc. could harm competition in markets for aviation fuel filtration products.
“Parker-Hannifin bought CLARCOR knowing that this transaction raised serious antitrust concerns under Section 7 of the Clayton Act in the development, manufacture and sale of aviation fuel filtration products,” said deputy assistant attorney general Donald Kempf of the DOJ's Antitrust Division. “The division is committed to vigorous and sound enforcement of the antitrust laws, and will do its job to protect American customers regardless of whether a merger has already been consummated.”
The Justice Department seeks a divestiture of aviation filtration products sufficient to replace the competitive significant Clarcor had in the marketplace. Without this divestiture, select markets in the U.S. would incur higher prices, less innovation and less favorable terms of service.
“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 acting assistant attorney general Andrew Finch of the DOJ’s Antitrust Division.