WASHINGTON—The U.S. Justice Department is challenging Parker Hannifin Corp.'s $4.3 billion purchase of Clarcor Inc.
In an announcement on its website Sept. 26, the department said the deal "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 has filed a civil lawsuit in U.S. district court in Delaware. The lawsuit "seeks to restore the competition that this transaction eliminated" by asking the court to order Parker Hannifin "to divest an aviation fuel filtration business sufficient to replace Clarcor's competitive significance in the marketplace," the department said in the announcement.
"Parker Hannifin bought Clarcor knowing that this transaction raised serious antitrust concerns under Section 7 of the Clayton Act in the development, manufacture and sale of aviation fuel filtration products," said deputy assistant attorney general Donald Kempf, of the department Antitrust Division, in a statement.
Acting assistant attorney general Andrew Finch of the Antitrust Division added, "Parker Hannifin's acquisition of its only U.S. rival for these types of aviation fuel filtration products has effectively created a monopoly in these critical safety products, depriving their customers of the benefits of competition."