Source: http://www.justice.gov/atr/cases/f2400/2492.htm
Timestamp: 2014-10-23 18:41:20
Document Index: 552376674

Matched Legal Cases: ['§ 25', '§ 18', '§ 22', '§ 1391', '§ 22', '§ 1331']

Complaint : U.S. v. Florida Rock Industries, Inc., Harper Bros., Inc., Commercial Testing, Inc. and Daniel R. Harper
JACKSONVILLE DIVISION UNITED STATES OF AMERICA, Plaintiff, v. FLORIDA ROCK INDUSTRIES, INC.; HARPER BROS., INC.;
DANIEL R. HARPER, Defendants. |
| Civil No.: 99-516-CIV-J-20A
1. The United States seeks to prevent the proposed acquisition by defendant Florida Rock Industries, Inc. ("Florida Rock") of defendant Harper Bros., Inc. ("Harper Bros.") and defendant Commercial Testing, Inc. ("Testing") pursuant to a letter of intent entered into by defendants on May 5, 1999. Florida Rock and Harpers Bros. are two of only three significant producers of aggregate used for asphalt concrete and ready mix concrete in Southwest Florida, and two of the three producers of silica sand used for ready mix concrete in Southwest Florida. If the acquisition is permitted, Florida Rock would control about 68 percent of the aggregate sold for asphalt concrete and ready mix concrete and 60 percent of the silica sand sold for ready mix concrete in Southwest Florida. 2. Florida Rock's acquisition of Harper Bros. will terminate the direct price competition between Florida Rock and Harper Bros. in the Southwest Florida market. The acquisition substantially increases the opportunity for coordination that would raise prices to the detriment of consumers. Since there would be virtually no significant competitors remaining capable of increasing output, higher prices are likely to result unilaterally from the elimination of a significant competitor in the aggregate and silica sand markets even without coordination. I. JURISDICTION AND VENUE 3. This action is filed under Section 15 of the Clayton Act, 15 U.S.C. § 25, to prevent and restrain the violation by the defendants, as hereinafter alleged, of Section 7 of the Clayton Act, 15 U.S.C. § 18. 4. The defendants transact business in this District. Venue is proper in this District under 15 U.S.C. § 22 and 28 U.S.C. § 1391(c). 5. The defendants are engaged in interstate commerce and in activities substantially affecting interstate commerce. The Court has jurisdiction over this action and over the parties pursuant to 15 U.S.C. § 22 and 28 U.S.C. §§ 1331 and 1337. II. DEFINITIONS 6. "Aggregate" means crushed stone and gravel produced at quarries, mines, or gravel pits used to manufacture asphalt concrete and ready mix concrete. "Stone products" refer to any products produced at an aggregate quarry. 7. "Silica sand" means sand that is naturally occurring and not produced at an aggregate quarry (known as manufactured sand). Silica sand is used to produce specific types of ready mix concrete used in Florida Department of Transportation highway projects and commercial construction projects. 8. "Asphalt concrete" means a paving material produced by combining and heating asphalt cement (also referred to in the industry as "liquid asphalt" or "asphalt oil") with aggregate. 9. "Ready mix concrete" means a building material used in the construction of buildings, highways, bridges, tunnels, and other projects that is produced by mixing a cementing material (commonly portland cement) and aggregate with sufficient water to cause the cement to set and bind. Silica sand is combined with aggregate to produce specific types of ready mix concrete required for certain construction projects. 10. "Hot-mix plant" means a plant that produces asphalt concrete. 11. "Concrete plant" means a plant that produces ready mix concrete. 12. "Southwest Florida" means Charlotte, Lee, and Collier Counties and Sarasota County south of State Route 780 in Florida. III. DEFENDANTS 13. Florida Rock is a Florida corporation with headquarters in Jacksonville, Florida. Florida Rock operates in Florida, Georgia, Virginia, Maryland, Washington, D.C., and North Carolina. Extracting, processing, and selling aggregate and silica sand is one of its principal businesses. Florida Rock produces aggregates at its Alico Road Quarry in Lee County, Florida, and silica sand at its Witherspoon Sand Mine in Glades County, Florida. In 1997, Florida Rock reported total sales of approximately $456 million. 14. Harper Bros. is a Florida corporation with headquarters in Ft. Myers, Florida. One of Harper Bros. principal businesses is extracting and processing aggregates and silica sand. Harper Bros. produces aggregates at the Alico Road Mine in Lee County, Florida, and silica sand at the Palmdale Sand Mine in Glades County, Florida. In