In PacifiCorp, The Energy Group PLC, Peabody Holding Company, Inc., and Peabody Western Coal Company,(36) the complaint alleged that the proposed $10.7 billion acquisition by PacifiCorp of The Energy Group PLC ("TEG") would lessen competition substantially in the mining, production and sale of coal, and in wholesale electricity sales in the western United States. The acquisition involved two different but largely vertically-related forms of energy -- coal and electricity. TEG's Peabody Western Coal Company ("Peabody") was the only viable source of coal to Navajo and Mohave, two large coal-fired power plants in Arizona and Nevada. PacifiCorp provided retail electric service in seven western states, and competed with Navajo and Mohave. According to the complaint, a merged PacifiCorp/Peabody, because of its substantial electricity generation assets, would be able to increase its rivals' fuel costs and, consequently, the wholesale price of electricity in that part of the country. The proposed order required the divestiture of TEG's coal mines. Subsequently, the parties abandoned the transaction, and the Commission closed the investigation.
In LandAmerica Financial Group, Inc.,(37) the complaint alleged that the acquisition by LandAmerica Financial Group, Inc., formerly known as Lawyers Title Corporation ("LTC"), of Reliance Group Holdings, Inc. ("Reliance") would lessen competition substantially in the production and/or sale of title plant services in certain Florida, Michigan and Missouri counties, and in the District of Columbia. Title plants are privately owned collections of records and/or indices that are used by abstractors, title insurers, title insurance agents and others to determine ownership of and interests in real property in connection with the underwriting and issuance of title insurance policies. Because of the county-specific way in which title information is generated and the local character of the real estate markets in which the title plant services are used, geographic markets for title plant services are highly localized. Under the order, LTC was required to divest its title plants or those of Reliance in the counties of Brevard, Broward, Clay, Indian River, Pasco, St. Johns and St. Lucie, Florida; Ingham, Oakland and Wayne, Michigan; St. Louis, Missouri; and in the District of Columbia.(38)
In Federal-Mogul Corporation and T&N plc,(39) the complaint alleged that the proposed $2.4 billion acquisition by Federal-Mogul of T&N would lessen competition substantially in the worldwide markets for the development, manufacture and sale to original equipment manufacturers of (1) fluid film or "plain" thinwall bearings; (2) thinwall bearings for use in automobile and light truck engines; and (3) thinwall bearings for use in heavy truck engines and heavy equipment engines. The complaint also alleged that the acquisition would lessen competition substantially in the worldwide market for the manufacture and sale of light duty engine bearings and heavy duty engine bearings that are sold to the automotive and truck aftermarket. Thinwall bearings do not have roller or ball elements, but have a surface coating of oil which reduces friction. Each automobile and light truck engine, as well as every heavy truck and heavy equipment engine, must have thinwall bearings that are specifically designed and engineered for that engine. According to the complaint, the parties are the largest competitors in the relevant markets. The order required Federal-Mogul to divest the thinwall bearing business of T&N, as well as certain assets related to dry bearings or polymer bearings that are produced at the same facilities. In addition, the order prohibits Federal-Mogul from entering into any technology exchange or production arrangement with Daido Metal Co. Ltd., a joint venture partner of T&N.(40)
