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FTC Challenges Dunkirk MergerBy GARY GRAHAM Indiana News ServiceWASHING ION — The Federal Trade Commission (FTC is challenging a propped glassware industry merger involving the Indiana Glass Co. in Dunkirk.In a unanimous vote, the FTC issued a complaint j alleging the proposed acquisition by Lancaster Colony Corp. of the Federal Glass Company division (FGD) of : Federal Paper Board Co. may substantially lessen competition and lend to create u monopoly.”THE TWO COMPANIES involved are among the largest manufacturers of machine-made glassware in the United Slates.FGD is Ihe third largest iranufaclurer in the country and Lancaster Colony, through its subsidiary, Indiana Glass Co., is the fifth ranking producer.Under a proposed acquisition agreement announced March 4, Lancaster Colony plans to acquire all FGD assets for approximately 545 million. The companies manufacture moderately priced glass bcverageware, tableware, food preparation glassware and novelty and ornamental glassware items.THE FTC OBTAINED a preliminary injunction in a New York City federal district court to delay the transaction pending the outcome of the FTC’s administrative proceeding.A formal complaint is standard procedure when Ihe FTC determines it has “reason.to believe the law has been violated and Dial a proceeding (including a public hearing) is in Uie public interest.In its fiscal year ended Jan. I, 1977, FGD bad net sales of approximately 550 million anil income before allocation for taxes and corporate overhead of approximately W million.LN ITS FISCAL YEAR ended June tt. 1976. Indiana Glass had sales of roachinc-made glassware of approximately $36 million.Wilh its complaint, the FIX,’ fisted e number of contemplated” actions. For example, the commission noted, if the merger is consummated, the FTC may require Lancaster Colony to receive specific FTC approval before making any more acquisitions m the industry for a 10-ycar periodThe complaint alleges the machine-made glassware market is highly concentrated with the combined market share of the four largest manufacturers estimated to be approximately 70 per cent, and that “entry barriers are substantial.”Indiana Glass employs more than 1,000 persons at the Dunkirk facility.
Newspaper Details
Anderson Herald
Anderson, Indiana, US
Wed, Jun 29, 1977
Page 29
Full Page
Clipped by
Clyde C.
MD, USA 11 Aug 2018
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