[Federal Register Volume 65, Number 16 (Tuesday, January 25, 2000)]
[Notices]
[Page 3977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1680]


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DEPARTMENT OF JUSTICE

Antitrust Division


Motion to Modify Final Judgment and Memorandum in Support of 
Motion to Modify; United States v. Baroid Corp., et al.

    Notice is hereby given that Smith International, Inc. (``Smith'') 
has filed with the United States District Court for the District of 
Columbia a motion to modify the judgment in United States v. Baroid 
Corporation, et al., Civil Action No. 93-2621. The Department has 
consented to modification of the Judgment but has reserved the right to 
withdraw its consent if it determines that, based upon comments filed 
or other information, consent to the modification is not in the public 
interest.
    This case was filed on December 23, 1993, and alleged that the 
merger of Dresser Industries, Inc. (``Dresser'') and Baroid Corporation 
(``Baroid'') might substantially lessen competition in the United 
States in the manufacture and sale of two oil field service products, 
including drilling fluids, in violation of Section 7 of the Clayton 
Act. The Final Judgment was entered on April 12, 1994 and modified on 
September 19, 1996.
    Under the Final Judgment, Dresser was required to divest either its 
64 percent partnership interest in M-I Drilling Fluids Company or 
Baroid's wholly owned subsidiary, Baroid Drilling Fluids, Inc. Pursuant 
to the judgment, Dresser divested its partnership interest in M-I to 
Smith.
    Paragraph IV.F. of the Final Judgment states that the purchaser of 
the divested drilling fluids business may not combine that business 
with any one of three named companies. One of those companies is 
Schlumberger Ltd. (``Schlumberger''). In July 1999, Smith formed a 
drilling fluids joint venture with Schlumberger, and the United States 
petitioned the United States District Court for the District of 
Columbia to find Smith and Schlumberger in civil and criminal contempt 
for violating the Final Judgment by forming the joint venture. In 
December 1999, the District Court found Smith and Schlumberger guilty 
of criminal contempt and imposed a $750,000 fine against each company. 
Smith and Schlumberger settled the civil contempt case, agreeing to 
disgorge a total of $13.1 million in joint venture profits.
    Smith's motion proposes modifying the Final Judgment to remove 
Schlumberger from Paragraph IV.F. The United States has consented, 
subject to the comment period, to the modification as being in the 
public interest because of Schlumberger's failure to achieve more than 
2 percent of the U.S. drilling fluid market in the six years since the 
Final Judgment was filed.
    Copies of the Complaint and Judgment, the pleadings related to the 
1996 modification, Smith's motion and supporting memorandum, and the 
United States' consent are available for inspection in Room 215, 
Antitrust Division, U.S. Department of Justice, 325 7th St., NW., 
Washington, DC 20530 and at the Office of the Clerk of the United 
States District Court for the District of Columbia, Third Street and 
Constitution Avenue, NW., Washington, DC 20001. Copies of any of these 
materials may be obtained upon request and payment of a copying fee.
    Comments to the Department of Justice and to the Court regarding 
the proposed modification of the Final Judgment are invited from 
members of the public. They should be addressed to Roger W. Fones, 
Chief, Transportation, Energy and Agriculture Section, Antitrust 
Division, U.S. Department of Justice, Suite 500, 325 7th Street, NW., 
Washington, DC 20530 (202-307-6351.) Such comments must be received 
within 30 days.

Constance K. Robinson,
Director of Operations & Merger Enforcement, Antitrust Division.
[FR Doc. 00-1680 Filed 1-24-00; 8:45 am]
BILLING CODE 4410-11-M