Newpark Resources announced today that it has agreed to cancel its proposed $85 million sale of its Newpark Environmental Services business to CCS Corporation. This follows the October 23, 2008 announcement that the FTC would seek to block the proposed acquisition by filing suit in federal district court to halt the merger, pending a full trial before the Commission. The complaint alleges that the transaction would violate the antitrust laws by consolidating the only two significant providers of offshore exploration and production waste disposal services to the major oil and gas companies operating in the Louisiana Gulf Coast region. (See FTC press release at http://www1.ftc.gov/opa/2008/10/redsky.shtm).
“We were fully prepared to present at trial the strong evidence that this transaction was anticompetitive and would have resulted in higher prices and diminished service,” said David P. Wales, Acting Director of the FTC’s Bureau of Competition. “The abandonment of the deal in the face of our challenge is a victory for consumers.”
The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Room 394, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, N.W., Washington, DC 20580. To learn more about the Bureau of Competition, read “Competition Counts” at http://www.ftc.gov/competitioncounts.
(FTC File No.: 081-0170)