United States v. FMC Corporation
Opinion
Opinion
Harris, J.
Plaintiff United States has instituted these proceedings under Section 7 of the Clayton Act as amended (15 U.S. C.A. § 18) to enjoin defendants, Food Machinery Corporation and American Viscose Corporation (hereafter designated as FMC and Aviseo) from carrying out the sale of a substantial part of the assets of defendant Aviseo to FMC. The court has jurisdiction to grant the relief sought in accordance with the provisions of Section 15 of the Clayton Act ( 15 U.S.C.A. § 25 ).
The proceeding is novel in that it is the first time that the Department of Justice has sought an interlocutory injunction in a so-called “conglomerate” acquisition. Government counsel, however, would seek to label the contemplated acquisition “vertical” or “horizontal” in order to serve the immediate necessities of their argument.
An examination of the factual background is essential and necessary in order to distinguish this case from the principles announced in United States v. Philadelphia National Bank, et al., 374 U.S. 321 , 83 S.Ct. 1715 , 10 L.Ed.2d 915 , and United States v. Ingersoll-Rand Company et al., 3 Cir., 320 F.2d 509 , upon which the government places reliance.