X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
The Federal Trade Commission on Tuesday asked the U.S. District Court in Washington, D.C., for an emergency order to prevent Arch Coal Inc. from completing its $384 million acquisition of Triton Coal Co. “Unless this court issues an injunction pending appeal, defendants will be free to consummate their proposed acquisition, causing irreversible consequences,” the FTC said in a public version of the filing released Tuesday after the markets closed. The FTC had sought a preliminary injunction to stop the merger of the two mining companies, both of which operate in Wyoming’s Southern Powder River Basin. But U.S. District Judge John D. Bates denied the FTC motion Friday, finding that the agency failed to show that the merger was likely to harm competition. The FTC minced few words in blasting Bates and his conclusion that the agency had brought a “novel” merger challenge by focusing on the risk that other mining companies would collude to reduce output rather than to raise prices. “The only novelty in this matter is the district court’s abandonment of well-established principles of merger jurisprudence — a departure inspired by the court’s failure to grasp the basic economic principle that output restrictions often are the means by which rivals collectively raise prices,” the FTC said. The agency also said the judge erred in accepting Arch Coal’s commitment to sell the Buckskin mine, one of the two it is buying from Triton. This divestiture is unenforceable and not subject to ongoing FTC oversight, the agency said. “By relying decisively on the merger promises of the defendants about future behavior, the district court in effect repeals the statutory framework established over the past three decades to ensure that merger enforcement yields meaningful remedies,” the agency said. In justifying his decision, Bates faulted the FTC for failing to show that coal producers in the Southern Powder River Basin have colluded. He also criticized customers that testified in the antitrust case for failing to specify how the merger would affect coal prices. The FTC countered that such a level of certainty is well in excess of what the agency must show to secure a preliminary injunction. “This decision warrants close scrutiny by this court,” the FTC said. “Any temporary inconvenience that an expedited appeal may inflict on defendants’ merger plans is insignificant in light of the substantial legal issues raised by this appeal.” Copyright �2004 TDD, LLC. All rights reserved.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.