Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: FTC grants American Air Liquide’s application to divest assets, (Sep 1, 2016)
Organizations Mentioned:Airgas, Inc. | American Air Liquide Holdings, Inc. | Matheson Tri-Gas, Inc.
By Greg Hammond, J.D.
The FTC has approved American Air Liquide Holdings, Inc.’s application to sell certain assets to Matheson Tri-Gas, Inc., as required by a recent settlement that resolved claims that American Air Liquide’s $13.4 billion merger with Airgas, Inc. would harm competition. The approval letter was issued yesterday (In the Matter of American Air Liquide Holdings, Inc., File No. 161 0045, Dkt. C-4574).
American Air Liquide’s petition sought to divest to Matheson all bulk oxygen, nitrogen, and argon assets; all retail packaged welding gases assets; and parts of its bulk liquid carbon dioxide assets.
The FTC filed its administrative complaint in May 2016, alleging that the acquisition could substantially lessen competition or create a monopoly by: (1) eliminating actual, direct, and substantial competition between the two gas companies; (2) increasing the likelihood that Air Liquide would unilaterally exercise market power in the bulk oxygen, bulk nitrogen, bulk argon, bulk nitrous oxide, bulk liquid carbon dioxide, dry ice, and retail packaged welding gases markets in the relevant geographic areas; (3) enhancing the likelihood of collusion or coordinated interaction between the remaining firms in various markets; and (4) increasing the likelihood that consumers would be forced to pay higher prices for various gases.
The Commission conditioned approval of the merger on Air Liquide’s divestment of 16 air separation units, four vertically integrated dry ice and liquid carbon dioxide plants, two separate liquid carbon dioxide plants, two nitrous oxide plants, and three retail packaged welding gas and hardgood stores.
American Air Liquide has another pending petition, which was filed in July, to divest carbon dioxide assets to Aspen Air U.S. Corp.
Companies: American Air Liquide Holdings, Inc.; Airgas, Inc.; Matheson Tri-Gas, Inc.
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