Pitofsky on economies in Tosco merger

[James Love <love@cptech.org>]

I just ran across this Oct 16 quote from FTC Chair Pitofsky, indicating
the Tosco-Unocal merger approval was due to the FTC's acceptance of the
efficiencies defense.  jamie


http://www.ftc.gov/opa/1998/9810/pitofsky9810.htm

For Release: October 16, 1998

Pitofsky Assesses Impact of Merger Guideline Revisions

Robert Pitofsky, Chairman of the Federal Trade Commission, said today
that 18 months after adoption of new guidelines for treating efficiency
claims in defense of mergers, dire predictions about the effect of the
guideline revisions have proven inaccurate. 

[snip]

The agencies have won major cases in the face of efficiency claims. And
efficiency arguments have been significant and persuasive in the FTC's
decision to allow certain transactioons to proceed. 

  [snip]

In the Tosco-Unocal merger, involving a combination of refineries in
California, the decision not to challenge similarly was influenced by a
conclusion that there were real synergies to the deal. 

  [snip]