Acquisition Expected to Close Today; FTC Rep Comments on Hart-Scott
As of late this afternoon, the sales of the assets of Diamond Glass
to Belron US had not been completed, though Belron US spokesperson
Jenny Cain advised it was still expected to. Diamond Glass counsel
Michael Richman of Foley & Lardner advised the court at a hearing
on June 20 that sale was expected to close on June 30, barring the
companies' need to file under the Hart-Scott-Rodino Act.
"We anticipate that the closing will take place as scheduled,
but nothing is final yet," says Cain.
On Friday, Cain had advised the company had been advised that the
Hart-Scott-Rodino filing was unnecessary.
A representative of the Federal Trade Commission (FTC), which governs
the Hart-Scott-Rodino Act, said today that while Hart-Scott-Rodino
filings are private and are not available for public record, the
need to file or not to file is "pretty clear-cut."
"Typically, if the value of the sale is more than $63.1 million,
the filing is needed, and if it's below that, it's not-though there
are exceptions," he said.
Richman advised the court during the June 20 hearing that the Belron
US bid for Diamond was $54 million, with the agreement that Belron
US would assume $9 million in liabilities for the Kingston, Pa.-based
company-totaling $63 million, falling just below the $63.1 million
cut-off the FTC representative noted. At that time, the court approved
the sale of Diamond to Belron US "sale order substantially
as it [was described on June 20]." (CLICK
HERE for related story.)
If and when a Hart-Scott-Rodino filing is made, the FTC, along
with the Department of Justice, are given a period of time to review
a sale for anti-trust issues, prior to its closing. (CLICK
HERE for more information on the act.)
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