UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
COMMISSIONERS:
Robert Pitofsky, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
In the Matter of
EMERSON ELECTRIC CO., a corporation, and
EMERSON POWER TRANSMISSION CORP., a corporation.
Docket No. C-3291
ORDER SETTING ASIDE ORDER
On July 24, 1998, Emerson Electric Co. and its wholly-owned subsidiary
Emerson Power Transmission Corp. (collectively "Emerson"), the
respondents named in the above-referenced consent order ("Order")
issued by the Commission on June 22, 1990, filed its Petition to
Reopen and Modify Consent Order ("Petition") in this matter. Emerson
asks that the Commission reopen and modify the Order pursuant to
Section 5(b) of the Federal Trade Commission Act, 15 U.S.C. § 45(b),
and Section 2.51 of the Commission's Rules of Practice and Procedure,
16 C.F.R. § 2.51, and consistent with the Statement of Federal Trade
Commission Concerning Prior Approval and Prior Notice Provisions,
issued on June 21, 1995 ("Prior Approval Policy Statement").(1) The
Petition requests that the Commission reopen and modify the Order to
eliminate the prior approval provision and related reporting
requirements set forth in Paragraph IX of the Order. The thirty-day
public comment period on the Petition ended on September 24, 1998. No
comments were received. For the reasons discussed below, the
Commission has determined to grant Emerson's Petition.
The Complaint in this matter alleges that Emerson's agreement with
McGill Manufacturing Co., Inc. ("McGill") to acquire substantially all
of McGill's voting securities violated Section 5 of the Federal Trade
Commission Act ("FTC Act"), 15 U.S.C. § 45, and Section 7 of the
Clayton Act, as amended, 15 U.S.C. § 18, by lessening competition and
tending to create a monopoly in the production and distribution of
mounted ball bearings in the United States.
The Order required Emerson to divest McGill's Mounted Ball Bearings
Business, as defined in Paragraph I.F. of the Order. On June 14, 1991,
the Commission approved Emerson's application to divest McGill's
Mounted Ball Bearings Business to VMB, Inc., an affiliate of The
SNIPPETS:
BEFORE FEDERAL TRADE COMMISSION
EMERSON POWER TRANSMISSION CORP., a corporation.
On July 24, 1998, Emerson Electric Co. and its wholly-owned subsidiary Emerson Power
Emerson asks that the Commission reopen and modify the Order pursuant to Section 5of the
ting requirements set forth in Paragraph IX of the Order.
For the reasons discussed below, the Commission has determined to grant Emerson's Petition.
The Complaint in this matter alleges that Emerson's agreement with McGill Manufacturing Co.,
The Order required Emerson to divest McGill's Mounted Ball Bearings Business, as defined in
On June 14, 1991, the Commission approved Emerson's application to divest McGill's Mounted
Under the Order, Emerson is prohibited for a ten-year period from acquiring, without the
The Commission, in its Prior Approval Policy Statement, "concluded that a general policy of
learning about and reviewing mergers by companies as to which the Commission had previously found
The Commission stated that it will continue to fashion remedies as needed in the public
The Commission said in its Prior Approval Policy Statement that "a narrow prior approval
The Commission also announced, in its Prior Approval Policy Statement, its intention "to
the Commission will apply a rebuttable presumption that the public interest requires
The presumption is that setting aside the general prior approval requirement of Paragraph IX
There is nothing to suggest that the respondent would attempt the same or essentially the
Nothing to overcome the presumption having been presented, and because the only remaining
Accordingly, IT IS HEREBY ORDERED that this matter be, and it hereby is, reopened, and that
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