FTC asks ArvinMeritor for more information
Sep 10, 2003 12:00 PM, By Tim ParryArvinMeritor Inc has received a request for additional information from the Federal Trade Commission (FTC) relating to its tender offer for all of the outstanding common shares of Dana Corp.
According to a Dana press release, FTC seeks information regarding a dozen product areas where there is material competitive overlap between ArvinMeritor and Dana, including medium- and heavy-duty axles; axle components and systems; foundation, S-cam, and disc brakes; driveshafts; and air and oil filters.
ÒFrom the outset, we said that ArvinMeritorÕs tender offer raises serious antitrust issues and was likely to attract intensive scrutiny from government regulatory authorities,Ó said Joe Magliochetti, Dana chairman and chief executive officer. ÒDana and ArvinMeritor are currently the only substantial North American producers of axles, driveshafts, and foundation brakes for medium- and heavy-duty trucks, with combined market shares ranging from 80% to 100%.Ó
ArvinMeritor said that the request is not unusual for transactions of this kind and that the scope of the request was expected.
This request extends the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, during which FTC is permitted to review the proposed transaction.