[Federal Register Volume 64, Number 97 (Thursday, May 20, 1999)]
[Notices]
[Pages 27547-27548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12661]
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FEDERAL TRADE COMMISSION
[File No. 9810327]
Quexco Incorporated; Analysis To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
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SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices or unfair methods of competition. The attached Analysis to
Aid Public Comment describes both the allegations in the draft
complaint that accompanies the consent agreement and the terms of the
consent order--embodied in the consent agreement--that would settle
these allegations.
DATES: Comments must be received on or before July 19, 1999.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT: Philip Eisenstat, FTC/S-3627, 601
Pennsylvania Avenue, N.W., Washington, D.C. 20580, (202) 326-2769.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Section 2.34 of
the Commission's Rules of Practice, 16 CFR 2.34, notice is hereby given
that the above-captioned consent agreement containing a consent order
to cease and desist, having been filed with and accepted, subject to
final approval, by the Commission, has been placed on the public record
for a period of sixty (60) days. The following Analysis to Aid Public
Comment describes the terms of the consent agreement, and the
allegations in the complaint. An electronic copy of the full text of
the consent agreement package can be obtained from the FTC Home Page
(for May 14th, 1999), on the World Wide Web, at ``http://www.ftc.gov/
os/actions97.htm.'' A paper copy can be obtained from the FTC Public
Reference Room, Room H-130, 600 Pennsylvania Avenue, N.W., Washington,
D.C. 20580, either in person or by calling (202) 326-3627.
Public comment is invited. Comments should be directed to: FTC/
Office of the Secretary, Room 159, 600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580. Two paper copies of each comment should be
filed, and should be accompanied, if possible, by a 3\1/2\ inch
diskette containing an electronic copy of the comment. Such comments or
views will be considered by the Commission and will be available for
inspection and copying at its principal office in accordance with
Section 4.9(b)(6)(ii) of the Commission's Rules of Practice (16 CFR
4.9(b)(6)(ii).
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission (``Commission'') has accepted, subject
to final approval, an Agreement Containing Consent Order
(``Agreement'') from Quexco Incorporated (``Quexco'') relating to a
proposed acquisition by Quexco of Pacific Dunlop GNB Corporation
(``GNB'').
The proposed Consent Order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
Agreement and the comments received and will decide whether it should
withdraw from the Agreement or make final the Agreement's proposed
Order.
Both Quexco, a Delaware corporation, and GNB, also a Delaware
corporation, operate secondary lead smelters. Secondary lead smelters
are facilities that recyle products containing lead, such as old lead-
acid batteries and other lead bearing products, into pure lead or lead
alloys that can be used again by batter manufacturers and other
industries. The output of secondary smelters is called secondary lead.
Primary lead smelters use lead bearing ore to produce pure lead or lead
alloys. The output of primary smelters is called primary lead. For most
uses for lead, either primary or secondary lead can be used.
The Proposed Complaint
The proposed complaint alleges that the relevant geographic market
for evaluating the acquisition's effect in the relevant product markets
is California, and that the proposed acquisition may substantially
lessen competition in the smelting and refining of lead in California
and in providing lead recycling services in California.
The proposed complaint alleges that Quexco and GNB are the only two
operators of lead smelters in California and the only two firms that
perform lead recycling in California. The complaint further alleges
that the proposed transaction would create a monopoly and give Quexco
the ability to unilaterally exercise market power.
The proposed complaint alleges that entry into the alleged markets
would not be timely, likely, or sufficient to deter or offset the
adverse effects of the acquisition on competition in these markets.
Lead is a toxic substance. Construction of a new secondary lead smelter
requires extensive permits before construction on a smelter could
begin. Obtaining permits for a new smelter in California would take
more than two years. Because lead is a toxic substance, community
opposition is likely to any new smelters in California, and such
community opposition may prevent the opening of any new smelters in
California.
The proposed Order would remedy the alleged violation by preserving
the competition that would otherwise be lost as a result of Quexco's
acquisition of GNB. The proposed Order requires Quexco to divest the
GNB secondary smelter in California to Gopher Resources, Inc.
(``Gopher''), under the terms of a contract for the sale of that plant
between Quexco and Gopher. The proposed Order allows Quexco to complete
its acquisition of GNB during the sixty (60) day comment period, but
requires that the GNB California smelter be held separate until the
Order becomes final and then requires the sale of the smelter to Gopher
within 10 days of the Order being made final by the Commission.
The sale of the GNB smelter to Gopher is subject to the approval by
the Commission. If the sale to Gopher is not approved by the
Commission, then Quexco must rescind the transaction with Gopher and
divest the GNB
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smelter, within six (6) months after the date on which the Order
becomes final, to an acquirer and in a manner that receives the prior
approval of the Commission.
The purpose of this analysis is to facilitate public comment on the
proposed Order. This analysis is not intended to constitute an official
interpretation of the Agreement or the proposed Order or in any way to
modify the terms of the Agreement or the proposed Order.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-12661 Filed 5-19-99; 8:45 am]
BILLING CODE 6750-01-M