Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP): Secondary Review, 26487 [2017-11814]
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Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Notices
America because freight costs and
logistical challenges limit wood product
manufacturers’ ability to purchase
significant volumes of industrial wood
coatings from overseas.
Currently, three firms—SherwinWilliams, Valspar, and Akzo Nobel—
manufacture and sell most industrial
wood coatings in North America.
Collectively, these three firms control
over 70 percent of the North American
market for industrial wood coatings.
The Commission often calculates the
Herfindahl-Hirschman Index (‘‘HHI’’) to
assess market concentration. Under the
Federal Trade Commission and
Department of Justice Horizontal Merger
Guidelines, markets with an HHI above
2,500 are generally classified as ‘‘highly
concentrated,’’ and acquisitions
‘‘resulting in highly concentrated
markets that involve an increase in the
HHI of more than 200 points will be
presumed to be likely to enhance market
power.’’ Absent the proposed remedy,
the acquisition would increase the HHI
by at least 900 points to over 2,700 for
industrial wood coatings, resulting in a
highly concentrated market.
IV. Effects of the Acquisition
Absent relief, the acquisition would
combine two of the three leading
industrial wood coatings suppliers and
pose a significant risk of competitive
harm. The industrial wood coatings
industry is a mature, stable industry,
with relatively low growth rates and
high barriers to entry. The acquisition
would eliminate substantial direct
competition between Sherwin-Williams
and Valspar. The acquisition also would
increase the ease and likelihood of
anticompetitive coordination between
the only two remaining major suppliers.
Thus, the acquisition likely would
result in higher prices and a reduction
in services and innovation to customers.
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V. Entry
Entry into the market for the
manufacture and sale of industrial wood
coatings would not be timely, likely, or
sufficient in magnitude, character, and
scope to deter or counteract the likely
competitive harm from the acquisition.
The industrial wood coatings industry
in North America enjoys significant
barriers to entry and expansion
including the high cost of building
industrial wood coatings plants, the
need for substantial technological and
manufacturing expertise, and the
significant on-site technical support
requirements of large customers. For
these reasons, entry by a new market
participant or expansion by an existing
one, would not deter the likely
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anticompetitive effects from the
acquisition.
VI. The Consent Agreement
The proposed Consent Agreement
remedies the competitive concerns
raised by the acquisition by requiring
Sherwin-Williams to divest Valspar’s
North America Industrial Wood
Coatings Business to Axalta or another
buyer approved by the Commission. In
addition, the Consent Agreement
requires Sherwin-Williams to transfer
the customer contracts currently
serviced by Valspar’s Industrial Wood
Coatings Business to the buyer.
Under the proposed Consent
Agreement, Sherwin-Williams will
divest Valspar’s industrial wood
coatings plants located at High Point,
North Carolina and Cornwall, Ontario.
In addition, Sherwin-Williams will
divest the research and development
facilities, warehouses, and testing
facilities of Valspar’s Industrial Wood
Coatings Business. Sherwin-Williams
will also divest intellectual property,
inventory, accounts receivable,
government licenses and permits, and
business records. The Consent
Agreement limits Sherwin-Williams’s
use of, and access to, confidential
business information pertaining to the
divestiture assets.
Axalta is one of the leading suppliers
of industrial coatings to large OEMs in
the automotive and general industrial
markets and is well positioned to
operate these assets as an effective
competitor. Through the proposed
Consent Agreement, Axalta will become
one of the leading North American
manufacturers of industrial wood
coatings. With the divested assets,
Axalta will be able to replicate Valspar’s
position in the market today. It will own
plants capable of manufacturing a broad
range of industrial wood coatings as
well as the other assets necessary to
compete successfully in this market.
Axalta’s presence will preserve the
three-way competition that currently
exists in the relevant markets and
moderate the potential for unilateral or
coordinated effects.
Sherwin-Williams must complete the
divestiture within ten days of the
closing of the acquisition. A Monitor
will monitor Sherwin-Williams’
compliance with the obligations set
forth in the Order. If Sherwin-Williams
does not fully comply with the
divestiture and requirements of the
Order, the Commission may appoint a
Divestiture Trustee to divest Valspar’s
North America Industrial Wood
Coatings Business and perform
Sherwin-Williams’ other obligations
consistent with the Order.
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26487
The purpose of this analysis is to
facilitate public comment on the
proposed Consent Agreement, and is not
intended to constitute an official
interpretation of the proposed Decision
and Order or to modify its terms in any
way.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017–11733 Filed 6–6–17; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Disease Control and
Prevention
Disease, Disability, and Injury
Prevention and Control Special
Emphasis Panel (SEP): Secondary
Review
This is to announce the cancelation of
a meeting, Research Using Linked Data
to Understand Motor Vehicle Injury
Among Older Adults, (FOA), CE17–001,
and Development and Evaluation of
Sports Concussion Prevention Strategies
(FOA) CE17–002, secondary review.
SUMMARY: This meeting was announced
in the Federal Register on May 15,
2017, Volume 82, Number 92, pages
22335 and 22336. This meeting is
canceled in its entirety.
CONTACT PERSON FOR MORE INFORMATION:
Gwendolyn H. Cattledge, Ph.D.,
M.S.E.H., Deputy Associate Director for
Science, National Center for Injury
Prevention and Control, CDC, 4770
Buford Highway, NE., Mailstop F–63,
Atlanta, Georgia 30341, Telephone (770)
488–1430.
The Director, Management Analysis
and Services Office, has been delegated
the authority to sign Federal Register
notices pertaining to announcements of
meetings and other committee
management activities, for both the
Centers for Disease Control and
Prevention and the Agency for Toxic
Substances and Disease Registry.
Claudette Grant,
Acting Director, Management Analysis and
Services Office, Centers for Disease Control
and Prevention.
[FR Doc. 2017–11814 Filed 6–6–17; 8:45 am]
BILLING CODE 4163–18–P
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[Federal Register Volume 82, Number 108 (Wednesday, June 7, 2017)]
[Notices]
[Page 26487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11814]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Disease Control and Prevention
Disease, Disability, and Injury Prevention and Control Special
Emphasis Panel (SEP): Secondary Review
This is to announce the cancelation of a meeting, Research Using
Linked Data to Understand Motor Vehicle Injury Among Older Adults,
(FOA), CE17-001, and Development and Evaluation of Sports Concussion
Prevention Strategies (FOA) CE17-002, secondary review.
SUMMARY: This meeting was announced in the Federal Register on May 15,
2017, Volume 82, Number 92, pages 22335 and 22336. This meeting is
canceled in its entirety.
CONTACT PERSON FOR MORE INFORMATION: Gwendolyn H. Cattledge, Ph.D.,
M.S.E.H., Deputy Associate Director for Science, National Center for
Injury Prevention and Control, CDC, 4770 Buford Highway, NE., Mailstop
F-63, Atlanta, Georgia 30341, Telephone (770) 488-1430.
The Director, Management Analysis and Services Office, has been
delegated the authority to sign Federal Register notices pertaining to
announcements of meetings and other committee management activities,
for both the Centers for Disease Control and Prevention and the Agency
for Toxic Substances and Disease Registry.
Claudette Grant,
Acting Director, Management Analysis and Services Office, Centers for
Disease Control and Prevention.
[FR Doc. 2017-11814 Filed 6-6-17; 8:45 am]
BILLING CODE 4163-18-P
