Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Fidelity National Financial to divest seven title plants in Oregon, (Jul 25, 2014)
Organizations Mentioned:AmeriTitle, Inc. | Fidelity National Financial, Inc. | Fidelity Natl. Financial, Inc. | Lender Processing Services, Inc. | Old Republic Title | Old Republic Title Company of Oregon
By Greg Hammond, J.D.
Fidelity National Financial, Inc.’s applications to divest seven Oregon real estate title plants were approved by the FTC yesterday. The divestitures are required as part of a settlement with the Commission over charges Fidelity’s acquisition of Lender Processing Services, Inc. (LPS) would substantially lessen competition in the provision of title information services in Oregon (In the Matter of Fidelity National Financial, Inc., File No. 131 0159, Case No. C-4425).
The FTC’s approval letters allow Fidelity to sell five title plants—located in Clatsop, Columbia, Coos, Josephine, and Tillamook counties—to AmeriTitle, Inc., and two title plants—located in the tri-county Portland metropolitan area and Polk County—to Old Republic Title Company of Oregon. Although Fidelity had originally applied to divest six title plants to AmeriTitle and one title plant to Old Republic, the company filed two amended applications in May 2014 to divest only five of the plants to AmeriTitle and two of the plants to Old Republic.
According to the settlement order, entered in March 2014, Fidelity was required to “divest the Title Plant Assets, absolutely and in good faith, at no minimum price, to an Acquirer that receives prior approval of the Commission and in a manner (including a Divestiture Agreement) that receives the prior approval of the Commission.” Without divestiture, Fidelity’s acquisition of LPS would have harmed competition by providing Fidelity with the power to deny competitors access across the various counties, in violation of U.S. antitrust law.
The Commission voted in favor of approving the amended divestiture applications 4-1. Commissioner Joshua D. Wright voted no.
Companies: Fidelity National Financial, Inc.; Lender Processing Services, Inc.; AmeriTitle, Inc.; Old Republic Title Company of Oregon
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