The Federal Trade Commission has appointed a trustee to find an entity to launch a low-voltage industrial fuse manufacturing business to be operated in competition with Cooper Industries, Inc., following Cooper's failure to find a licensee. The licensing and divestiture provisions are designed to restore competition that allegedly was substantially reduced by Cooper's acquisition of Brush Fuses, and thereby keep prices for the fuses competitive. Cooper was required by the 1993 consent order to accomplish the licensing and accompanying divestiture by October 1994.
Cooper is based in Houston, Texas.
The 1993 FTC consent order settling charges over the acquisition permitted Cooper to go ahead with the deal only so long as it agreed to undertake the required licensing and divestiture and to abide by certain other requirements. The Commission vote to appoint the trustee in this matter was 5-0.