The United States District Court for the District of Columbia has granted the Federal Trade Commission’s request for a preliminary injunction enjoining CCC Information Services Inc.’s merger with Mitchell International Inc.
Following the court decision, the two claims services firms called off their merger.
On Nov. 25, 2008, the FTC filed suit to block the merger of CCC and Mitchell, charging that the transaction would hinder competition in the market for electronic systems used to estimate the cost of collision repairs, known as “estimatics,” and the market for software systems used to value passenger vehicles that have been totaled, known as total loss valuation systems.
“The court’s decision today was a triumph for consumers and reaffirms the vital role competition plays in our economy,” said David P. Wales, acting director of the FTC’s Bureau of Competition. “We brought this case because of the impressive body of evidence developed by staff demonstrating that the combination of these two competitors would substantially lessen competition, ultimately leading to higher prices and less innovation for consumers.”
Topics Mergers & Acquisitions
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