DOJ Requires Railroad Component Divestiture

Law360, New York (April 19, 2007, 12:00 AM EDT) -- Alleging anti-competitive conduct, the U.S. Department of Justice has forced industrial component company Amsted Industries Inc. to divest certain assets resulting from its 2005 acquisition of FM Industries.

In a complaint and accompanying consent decree filed Wednesday before the U.S. District Court in Washington D.C., the DOJ accused Amsted of raising prices on end-of-car cushioning units, or EOCCs, directly after purchasing FMI, its one competitor in the market.

“Amsted’s acquisition of FMI has reduced the number of new EOCC suppliers from two to one, resulting in...
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