MacDermid Merger Goes Despite Antitrust Fears
As part of the consent order pending court approval, specialty chemicals concern MacDermid agreed to shed some of Polyfibron's operations and modify other parts of the merger agreement and agreements with competitors and customers to settle antitrust concerns raised by regulators. Polyfibron makes printing plates for the graphic arts industry.
The Federal Trade Commission said the pact reached with the companies, which settles both the merger and previous anticompetitive concerns, requires the divestiture of Polyfibron's liquid photopolymer business to Chemence Inc. within 20 days of the final approval of the consent.
In addition, the companies agree to drop any agreements to distribute the specialized compound—used to print advertising on plastics and other materials—that could have lessened competition for the product.
The companies are two of a small number of firms involved in the manufacture, distribution and sale of liquid photopolymers. They have arrangements to be exclusive sellers in North America of the sheets used in advertising displays in stores and other non-traditional printing.
In court filings, FTC lawyers said MacDermid and Asahi Chemical Industry Co. Ltd., a Japanese rival, worked together from 1995 through the end of last year essentially to split the North American and Japanese markets.
"MacDermid and Asahi engaged in continuing discussions and correspondence which repeatedly confirmed the parties' understanding that Asahi would not compete in the sale of liquid photopolymers in Japan," according to court documents filed in the case. The deal "had the purpose and effect of allocating or dividing territories or markets for the manufacturer and sale liquid photopolymers, and restricting competition, including price competition between MacDermid and Asahi."
Without the divestitures, the FTC said, the MacDermid combination with Polyfibron would have resulted in a monopoly in the market for the plastic compound and the sheet plastic.