US Files Antitrust Lawsuit Against Parker-Hannifin On CLARCOR Deal

(RTTNews) - The U.S. Department of Justice filed a civil antitrust lawsuit against Parker-Hannifin Corp. (PH), challenging its acquisition of CLARCOR Inc (CLC). The department said that the $4.3 billion transaction substantially lessened competition in markets for aviation fuel filtration products in the United States, which threatens to result in higher prices, less innovation, and less favorable terms of service.

The department's lawsuit seeks to restore the competition that this transaction eliminated by asking the U.S. District Court for the District of Delaware to order Parker-Hannifin to divest an aviation fuel filtration business sufficient to replace CLARCOR's competitive significance in the marketplace.

According to the department's complaint, Parker-Hannifin and CLARCOR were the only two manufacturers of EI-qualified aviation fuel filtration systems and filter elements in the United States and were engaged in vigorous head-to-head competition. That competition enabled customers to negotiate better pricing and to receive more innovative products and better terms of service. The transaction eliminated this competition.