CR - Crane $360M sale of engineered materials unit to Grupo Verzatec challenged by DOJ

Crane's (NYSE:CR) proposed $360 million sale of its engineered materials business to Group Verzatec is being challenged the U.S. Dept. of Justice on antitrust grounds. The DOJ filed a civil lawsuit Thursday to stop Grupo Verzatec  from acquiring its biggest competitor, Crane Composites, according to a press release from the DOJ. The complaint, filed in the U.S. District Court for the Northern District of Illinois, alleges that the proposed deal would harm competition in production and sale of pebbled fiberglass reinforced plastic ("FRP") wall panels. The lawsuit comes after Crane (CR) agreed to sell its Engineered Materials segment to Grupo Verzatec S.A. de C.V. for $360M in late May. “Verzatec’s proposed acquisition of Crane is a brazen attempt to eliminate a rival and cement a monopoly in this market,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Acquisitions that create or entrench monopoly power are illegal and violate the Sherman and

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Crane $360M sale of engineered materials unit to Grupo Verzatec challenged by DOJ