Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC seeks comment on Polypore’s application to divest Microporous, (Sep 27, 2013)

By Tobias J. Gillett, J.D., LL.M.

The FTC has announced it is seeking comment on an application by Polypore International, Inc. to divest all stock and assets related to Microporous Products, L.P., a company it acquired in February 2008, to Seven Mile Capital Partners, in order to comply with an FTC order that found the acquisition to be anticompetitive and required Polypore to sell Microporous to an FTC-approved buyer (In the matter of Polypore International, Inc., FTC File No.: 081 0131).

A September 9, 2008, FTC administrative complaint charged that the acquisition had resulted in decreased competition and higher prices in the North American deep-cycle, motive, automotive, and uninterruptible power supply stationary markets for battery separators for flooded lead acid batteries. On February 22, 2010, following an administrative trial, Administrative Law Judge D. Michael Chappell found the acquisition to be anticompetitive, and that complete divestiture of Microporous’ assets was required to remedy the effects of the acquisition and to restore competition.

On November 5, 2010, a unanimous decision of the Commission upheld the ALJ’s initial decision, concluding that the acquisition was anticompetitive in the deep-cycle, motive, and automotive markets, but not in the uninterruptible power supply stationary market. The Commission’s final order required Polypore to divest the assets it acquired to an FTC-approved buyer within six months after the divestiture provisions became final. On July 11, 2012, the U.S. Court of Appeals in Atlanta affirmed the FTC’s decision and order, including the divestiture provisions (Polypore International Inc. v. FTC, 686 F.3d 1208, 2012-1 Trade Cases ¶77,970). On June 24, 2013, the U.S. Supreme Court denied Polypore’s petition for certiorari.

Polypore’s application contends that Seven Mile Capital is a well-qualified buyer capable of and willing to operate Microporous as an independent and effective competitor. The application asserts that the proposed divestiture of Microporous to Seven Mile Capital would fully restore competition and achieve the remedial purposes of the FTC’s order.

Public comments on the application may be submitted until October 28, 2013. Written comments can be mailed to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580, or submitted electronically here.

Companies: Polypore International, Inc.; Microporous Products, L.P.; Seven Mile Capital Partners

News: Antitrust FederalTradeCommissionNews