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US government files suit over Parker-Hannifin acquisition

27 September 2017

The US Department of Justice (DoJ) filed a civil anti-trust lawsuit against Parker-Hannifin on 26 September over the company’s acquisition of US-based fuel filter company CLARCOR.

According to the complaint lodged by the US DoJ in the US District Court for Delaware, the DoJ alleges that Parker-Hannifin acquired the only other US manufacturer of aviation fuel filtration systems, with the only other manufacturer of equally certified systems being based in Germany. The unnamed German manufacturer is said to lack manufacturing facilities as well as sales, warehousing, and distribution infrastructure in the United States, making competition “nearly non-existent”.

As a result, the DoJ alleges that the reduced competition will lead to increased costs, reduced innovation, and longer delivery times as facilities are consolidated.

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