Industrials archive - The Capitol Forum

Alaska/Hawaiian: DOT, States Seek Remedies as Department Considers Merger Application

The Department of Transportation and some states are seeking remedies from Alaska Airlines (ALK) in its bid for Hawaiian Airlines (HA) as the carriers submit to DOT’s review of their $1.9 billion deal, sources familiar with the matter...

Aug 28, 2024 Read Now >

Despite a Weakened Macron, His Fight for European ‘Champions’ Vs. Competition Enforcement Isn’t Going Anywhere, Experts Say

Recent elections in France have weakened Emmanuel Macron in Paris and Brussels. But the push by the French president and other senior European politicians for less aggressive European Union competition enforcement to favor companies in the region over foreign rivals will remain strong,...

Jul 23, 2024 Read Now >

Uber/Foodpanda: Taiwanese Regulator Meets With Restaurant Operators, Drivers Amid Concerns About Worse Service, Lower Pay

In examining Uber Technologies’ (UBER) proposed acquisition of Delivery Hero’s (DHER) Foodpanda business, Taiwan’s competition regulator met this week with industry participants such as restaurant chain operators and drivers, who have complained about the $950 million deal leading...

Jun 21, 2024 Read Now >

WillScot/McGrath: Buyer Has Pursued Aggressive Roll-Up Strategy, Eliminating Competition and Raising Prices

WillScot Mobile Mini Holdings (WSC) has pursued an aggressive seven-year roll-up strategy in the office trailer and portable storage business, largely avoiding antitrust scrutiny while completing an eye-popping 21 acquisitions in the last two years alone. It’s now trying to buy what...

Apr 19, 2024 Read Now >

Absent General Dynamics Improvements, Pentagon Forecasts Year-Long Delay to Columbia-class Nuclear Submarine Program

The Navy is projecting a year-long delay to its No. 1 acquisition program, the Columbia-class ballistic missile submarine fleet, unless prime contractor General Dynamics Electric Boat (GD) makes significant performance improvements, two sources told The Capitol...

Mar 11, 2024 Read Now >

IAG/Air Europa: EC Review of Airline Merger Has Scrutinized Over 90 Overlapping Flight Routes

The European Commission has been examining over 90 passenger routes served by both International Airlines Group (IAG) and Air Europa, a Spanish carrier that IAG is attempting to purchase for the second time in five years, according to sources familiar with the...

Mar 05, 2024 Read Now >

Evolv Technology: Weapons Detection Company Scrubs Online Marketing Materials in Midst of FTC, SEC Probes

Evolv Technology (EVLV), which has sold itself to customers and investors as a “frictionless” artificial intelligence weapons detection system capable of screening people 10 times faster than conventional metal detectors, recently made several changes to its online marketing...

Mar 01, 2024 Read Now >

The Antitrust Agenda: Capital One/Discover Deal Announced as CFPB, Durbin Scrutinize Credit Card Industry and DOJ Investigation of Visa Continues

DOJ investigation of Visa has recently taken back seat to Apple, Live Nation probes. DOJ has prioritized its monopolization investigation of Apple (AAPL) and is expected to file suit soon. The department is on track to follow that litigation with a suit against Live Nation Entertainment...

Feb 20, 2024 Read Now >

Alaska/Hawaiian: JetBlue Decision Provides Roadmap for Key Questions Raised by Latest Industry Deal

The regulatory path grew riskier for Alaska Airlines’ (ALK) proposed $1.9 billion acquisition of Hawaiian Airlines (HA) after DOJ won the JetBlue/Spirit case last week, antitrust and airline experts told The Capitol Forum. In enjoining JetBlue Airways’ (JBLU) $3.8 billion attempted...

Jan 23, 2024 Read Now >

JetBlue/Spirit: Buyer’s Entry into Market Doesn’t Lower Fares as Much as ULCCs Do, Frontier CEO Says

The antitrust trial on DOJ’s suit to block JetBlue Airways (JBLU) $3.8 billion bid for Spirit Airlines (SAVE) entered its third week with Frontier Airlines (ULCC) CEO Barry Biffle asserting today that the “JetBlue Effect” tends not to “drop the fare as much” as ultra-low cost...

Nov 14, 2023 Read Now >

Flowserve/Velan: France’s Rejection of Deal Reveals Sensitive Assets Remain Off Limits, Even to Allies

France’s rejection of U.S.-based Flowserve’s (FLS) proposed $245 million purchase of Canadian industrial valve manufacturer Velan (TSX: VLN) last month should serve as a warning to dealmakers regarding the limits of trust between even longstanding allies, trade and national security...

Nov 02, 2023 Read Now >

Evolv Technology: Claims Made in Connection With Sales of Weapons Detection Systems Appear to Overstate Capabilities, Potentially Exposing Company to FTC Action

Security screening company Evolv Technology (EVLV) may be overstating the capabilities of its walk-through metal detectors, which the company markets as faster and smarter than competitors—claims that have been called into question by customers and an industry research group, raising...

Sep 22, 2023 Read Now >

Enbridge/Dominion: Vertical Power Concerns Related to Dominion’s Control Over Contract Terms Could Attract FTC Scrutiny

In its acquisition of utility company Dominion (D), Enbridge (ENB), a major pipeline operator, could use Dominion’s control over contracts between buyers and sellers of natural gas in Ohio to favor its own interstate pipelines, according to a Capitol Forum analysis. Enbridge currently...

Sep 22, 2023 Read Now >

AAON: Sales Concentration with Texas AirSystems and Meriton Raises Red Flags, Potentially Requiring Additional Disclosures

AAON Inc. (AAON), a large manufacturer of ventilation and air conditioning equipment for both commercial and residential use, discloses in its SEC filings that its customer Texas AirSystems LLC accounted for “more than 10% or more of its sales during 2022, 2021 and 2020” and accounted...

Aug 24, 2023 Read Now >

Prospects Brighten for Broadcom/VMware, ICE/Black Knight, L3Harris/Aerojet Following Recent Developments

The prospects for Broadcom’s (AVGO) proposed VMware (VMW) buyout, Intercontinental Exchange’s (ICE) attempted Black Knight (BKI) purchase and L3Harris Technologies’ (LHX) bid for Aerojet Rocketdyne have distinctly improved due to a series of recent, unrelated developments, according...

Jul 20, 2023 Read Now >

Assa Abloy/Spectrum Brands: Judge Grilled DOJ Litigator Over ‘Litigating the Fix’ Legal Standard; Case Still Comes Down to the Divestiture

At yesterday’s marathon hearing, U.S. District Judge Ana C. Reyes grilled DOJ litigator, Matthew Huppert, over the appropriate legal framework to apply to merger challenges involving a divestiture. Judge Reyes also indicated that DOJ’s challenge to Assa Abloy’s (ASSA-B:SS) bid for...

Mar 30, 2023 Read Now >

Korean Air/Asiana: Complainants Urge SAMR to Hold Parties to Initial Remedy Offer, Delay Decision

Chinese industry associations and airline operators are urging the country’s antitrust authority to require Korean Air (KRX: 003490) and Asiana Airlines (KRX: 020560) to abide by a remedy offer they made to address concerns with their proposed merger but subsequently rescinded, sources...

Dec 09, 2022 Read Now >

Amazon and Private Equity Firm Apollo Grab Power in U.S. Air Cargo Industry; TSA Defers Safety Authority to Amazon’s Unregulated Airline

Amazon and Apollo are rolling up power in the air cargo market. In recent years, Amazon (AMZN) acquired equity and warrants in Atlas Air (AAWW) and equity and warrants at ATSG (ATSG)— two of the largest U.S. independent air cargo carriers, according to an analysis by The Capitol Forum...

Nov 17, 2022 Read Now >

FTAI Infrastructure: Drag on Freight Revenues Likely Amidst US Steel Idling Facilities

Energy and transportation company FTAI Infrastructure (FIP) will likely see lower revenues this quarter amid a cut to steel and tin production from its largest freight customer, US Steel (X), according to a Capitol Forum investigation. ...

Oct 10, 2022 Read Now >

JetBlue Airways/Spirit Airlines: Spirit CEO’s Post-Announcement Interview Foreshadows Deal’s Uphill Antitrust Climb

JetBlue’s (JBLU) proposed $3.8 billion acquisition of Spirit Airlines (SAVE), which the companies formally inked on July 28 after a months-long takeover dance, faces an uphill climb to close given the carriers’ overlaps on dozens of highly-concentrated U.S. city-pair routes and a...

Aug 11, 2022 Read Now >

Privacy Policy: Third-Party Businesses that Engage in Data Collection for Cross-Contextual Advertising May Have to Alter Practices Under CPRA, Experts Say

The draft regulations of the California Privacy Rights Act contain various provisions that are designed to limit the sharing of consumers’ personal data with third-party companies that do not directly interact with consumers, according to privacy experts interviewed by The Capitol...

Aug 08, 2022 Read Now >

JetBlue’s Competing $3.6 Billion Merger Offer Complicates Spirit Airlines’ Opposition to Northeast Alliance

JetBlue’s (JBLU) unsolicited $3.6 billion offer earlier this month to buy Spirit Airlines (SAVE) does more than inject uncertainty into the discount carrier’s future plans: It complicates Spirit’s role as a leading opponent of JetBlue and American Airlines’ (AAL) Northeast...

Apr 21, 2022 Read Now >

Mastercard: DOJ Inquiring About Debit Card Used by Popular Delivery Apps

DOJ’s antitrust division is asking whether a Mastercard-backed debit card used by delivery apps like Grubhub, Instacart, Uber Eats (UBER) and DoorDash (DASH) prevent rival debit networks from competing at checkout, according to sources familiar with the probe. At issue is a debit card...

Mar 17, 2022 Read Now >

The European Antitrust Agenda: Konecranes/Cargotec Deal Nears EC Decision; NortonLifeLock Delays Avast Closing; Five Eyes Alliance Targets Supply-Chain Collusion; Google Adds Android to “Privacy Sandbox”

Konecranes, Cargotec await EC merger decision. The European Commission could conclude its in-depth investigation into a merger between Konecranes (HEL: KCR) and Cargotec (HEL: CGCBV) as early as this week. The EU watchdog will decide on the deal by March 3, but Phase II decisions often...

Feb 22, 2022 Read Now >

Coordination Out Loud: Volume 9: Analysis of Public Comments from Old Dominion Freight Line CFO

Special Note: Coordination Out Loud is a series of articles that analyze select corporate transcripts through the lens of Joseph Harrington’s landmark paper, “Collusion in Plain Sight: Firms’ Use of Public Announcements to Restrain Competition.” The paper concludes that...

Feb 18, 2022 Read Now >

Konecranes/Cargotec: Companies Take Aim at CMA Provisional Findings But Continue to Face High UK Hurdle

Konecranes (HEL: KCR) and Cargotec (HEL: CGCBV) this week lambasted the Competition and Markets Authority’s (CMA) provisional findings that their proposed merger is anticompetitive, calling the UK antitrust watchdog’s view of the $5.3 billion deal “wrong as a matter of fact and...

Jan 13, 2022 Read Now >

The Antitrust Agenda: Bedoya Committee Vote Pushed to January 24; Khan Continues to Meet with Congressional Republicans; Biden Repeats Concerns Over Monopolies in Meat Processing, Shipping, Rail and Big Tech

Bedoya hearing pushed to January 24. Originally, the Senate Commerce Committee’s re-vote on the nomination of Alvaro Bedoya, President Joe Biden’s choice to fill the FTC’s third Democratic seat, was tentatively set for January 12. But, according to a source, the vote has now been...

Jan 10, 2022 Read Now >

The European Antitrust Agenda: Google’s Clout Targeted in Germany; Developments in Microsoft/Nuance, Veolia/Suez Mergers; Meta Appeals Giphy Prohibition

Germany targets Google’s market power. Google faces deeper antitrust scrutiny in Germany following a Bundeskartellamt decision last week that the search engine and its parent, Alphabet (GOOG), meet a threshold for new abuse controls meant to speed up investigations. Remedies imposed on...

Jan 10, 2022 Read Now >

Ride Sharing: Uber, Lyft Driver Incentive Programs Could Draw FTC Exclusive Dealing, Rulemaking, Scrutiny, Experts Say

Uber (UBER) and Lyft (LYFT) deploy a number of incentive programs to attract drivers. The companies call them bonuses, but some legal experts see the programs as a potential violation of antitrust law. The programs are designed to incentivize drivers to work exclusively for one app during...

Dec 03, 2021 Read Now >

The European Antitrust Agenda: Return of EC Cartel Fines; Defense Sector Raided; Veolia Proposes Suez Merger Concessions; Cargotec, Konecranes Get More Time for EC Remedies While Also Facing UK Concerns; Italy Halts Chinese Takeover; Facebook Offers Kustomer Undertakings

Cartel fines. Companies in breach of EU cartel rules have racked up fines totalling almost 1.4 billion euros ($1.58 billion) so far in 2021, according to updated statistics released last week by the European Commission. That compares to fines amounting to less than 300 million euros ($338...

Nov 29, 2021 Read Now >

Bloom Energy: CPUC Proposed Decision Denies Company Bid for Microgrid Incentives During Grid Outages, Opting for Utilities’ Plans

On Friday, the California Public Utilities Commission (CPUC) preliminarily denied a Bloom Energy (BE) proposal to create a microgrid capacity services tariff to provide electricity to the grid during outages. Under its proposal previously reported on by The Capitol Forum, Bloom requested...

Nov 01, 2021 Read Now >

Coordination Out Loud: Volume 7: Analysis of Public Statements from Johnson Controls CFO at Morgan Stanley Conference

Special Note: Coordination Out Loud is a series of articles that analyze select corporate transcripts through the lens of Joseph Harrington’s landmark paper, “Collusion in Plain Sight: Firms’ Use of Public Announcements to Restrain Competition.” The paper concludes that antitrust...

Oct 20, 2021 Read Now >

Bloom Energy: Company Faces Risk to Incentives in South Korea; Joint Venture Partner Makes Big Bet on Hydrogen Competitor

Fuel cell manufacturer Bloom Energy (BE) faces a phase out of incentives it currently receives under The Republic of Korea’s Renewable Portfolio Standard (RPS) for its natural gas-powered fuel cells as the country moves towards a Hydrogen Portfolio Standard (HPS), sources familiar with...

Oct 19, 2021 Read Now >

S&P Global, Nvidia, Microsoft Reviews to Provide Insight Into EC, CMA Regulatory Approaches

European Commission and UK Competition and Markets Authority case handlers are grappling with parallel merger investigations into S&P Global’s (SPGI) acquisition of fellow financial data provider IHS Markit (INFO), Nvidia’s (NVDA) purchase of British chip designer Arm Holdings and...

Oct 13, 2021 Read Now >

S&P Global/IHS Markit: Companies Don’t Anticipate Additional Behavioral, Structural Remedies

S&P Global (SPGI) and IHS Markit (INFO) don’t anticipate offering remedies beyond the divestiture of businesses they’ve already proposed selling to News Corp. (NWSA) to secure competition approvals for their $44 billion transaction, The Capitol Forum has learned. The companies...

Sep 16, 2021 Read Now >

S&P Global/IHS Markit: DOJ Staff Leans Toward Recommending Clearance With Divestiture

DOJ staff is leaning toward recommending that department leadership clear S&P Global’s (SPGI) $44 billion bid for IHS Markit (INFO) now that the financial data service companies have lined up News Corp. (NWSA) as the divestiture buyer for IHS Markit’s energy pricing service,...

Sep 13, 2021 Read Now >

Horizontal Concerns Take Center Stage as EC Begins New In-Depth Merger Probes

The European Commission recently launched two in-depth probes into mergers involving the proposed combination of direct competitors, ticking the most common box for heightened regulatory scrutiny in Brussels. But in the months ahead, a vertical deal is set to join those proposed tie-ups...

Jul 14, 2021 Read Now >

TransDigm: DoD OIG, GAO Reports Due in Early Spring with Other Reports Pending; Findings Could Draw Renewed Congressional Scrutiny to Company

Several upcoming federal reports and investigations into aerospace parts supplier TransDigm (TDG) as well as investigations into government contracting practices more broadly could increase focus on the company as Congress sits down to negotiate the FY 2022 National Defense Authorization...

Feb 05, 2021 Read Now >

TransDigm: New OIG Audit Could Reveal Excessive Profits and Uncover Practices That Have Already Drawn Congressional and DOD Scrutiny

The Department of Defense Office of Inspector General’s new audit of TransDigm (TDG) could find that the company earned excessive profits and uncover contracting practices that have previously drawn scrutiny and the ire of both members of Congress and the Department of Defense,...

Jul 15, 2019 Read Now >

Northrop Grumman/Orbital ATK: DOD Leans Toward Recommending Deal’s Conditional Approval

The Defense Department is leaning toward recommending Northrop Grumman’s proposed Orbital ATK acquisition be conditionally cleared by the Federal Trade Commission, sources familiar with the matter said. FTC staff is nearing the end of its antitrust review of the two defense...

May 02, 2018 Read Now >

TransDigm: Senator Warren Writes Letter Urging DoD OIG Investigation

On May 19th, Senator Elizabeth Warren wrote a letter to Glenn Fine, the Acting Inspector General of the Department of Defense, requesting that Mr. Fine “expeditiously open an investigation into TransDigm if you have not already done so.” Senator Warren’s letter also states that as a...

Jun 12, 2017 Read Now >

TransDigm: Capitol Forum Analysis of Contract Data Indicates Prices Increase at a Higher Rate after TransDigm’s Acquisitions

Pricing Analysis In order to provide more insight into TransDigm’s acquisition strategy, we attempted to quantify how a company’s pricing for military spare parts changes after TransDigm acquires the company. Using contract data from Haystack Gold and a sample of 2,156 parts (as well...

Feb 03, 2017 Read Now >

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